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

Decision detail

Summary

Miss P complained that JMF managed her discretionary investment portfolio inappropriately, resulting in significant losses in early 2022 that impacted her income needs. She argued the investment manager invested in high-risk stocks against her wishes, failed to protect against downside risk, and did not account for her personal circumstances as someone unable to work with most assets held with JMF. The ombudsman found the portfolio was managed within the agreed medium-risk mandate with up to 10% permitted in high-risk investments, which was not exceeded. Although the manager could have acted differently, he was not required to do so, and the portfolio's overall performance exceeded benchmark. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that while the portfolio had a particular focus on tech stocks and experienced significant losses in early 2022, the investment manager did not breach the agreed mandate. The medium risk profile permitted up to 10% in high-risk investments, which was not exceeded. Miss P was reasonably knowledgeable about investments and engaged with the manager, who was responsive to her concerns. Although the manager could have acted differently, he was not required to do so given the agreed parameters. The portfolio's overall performance exceeded the benchmark over the entire investment period. The significant losses were attributable to market performance rather than mismanagement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website