Not upheld: Investment mis-selling complaint against J M Finn & Co Ltd

Decision detail

Summary

Ms S complained that JMF unsuitably managed her discretionary investment and SIPP portfolios by over-exposing them to technology stocks, resulting in significant losses between November 2021 and August 2022. She also complained about the complaint handling process. The ombudsman found that while the investment manager did focus on technology and North American markets, this strategy remained within the agreed medium-risk profile with up to 15% high-risk investments that Ms S had selected at the outset. The portfolios had outperformed relevant benchmark indexes over the full investment period from 2015 onwards, and the losses were attributable to market performance rather than mismanagement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Ms S selected a medium risk profile with no minimum low-risk investments and agreed to up to 15% high-risk investments. The documentation provided a reasonable understanding of how money would be invested. While the investment manager did focus on technology stocks and North American markets, this focus remained within the agreed parameters of the original mandate. The significant losses in early 2022 were due to market performance and global events rather than mismanagement. The portfolios had outperformed relevant benchmark indexes over the full period from 2015 onwards. The complaint handling procedure was thorough, transparent, and fair in accordance with FCA DISP Rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website