Partially upheld: General financial advice complaint against Brown Shipley & Co Limited
Financial Ombudsman decision DRN-5159821 of 2024-12-11T00:00:00+00:00. General financial advice complaint against Brown Shipley & Co Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-5159821 |
|---|---|
| Decision date | 2024-12-11T00:00:00+00:00 |
| Firm | Brown Shipley & Co Limited |
| Product | Mortgage |
| Claim type | General financial advice |
| Outcome | Partially upheld |
| Remedy | Brown Shipley must pay the estate: (1) the additional month's interest payment on the Lifetime Mortgage caused by the delay in completion of the repayment instruction; (2) 8% simple interest on that sum from the date paid to the date of repayment; (3) £300 for distress and inconvenience caused by the delay and lack of notice regarding adviser departure. |
Summary
The executors of Mr and Mrs C's estates complained to FOS about Brown Shipley's handling of their finances, including failure to advise repayment of a £60,000 Lifetime Mortgage, delays in processing the eventual repayment instruction, incorrect statement routing, and failure to notify Mr C of his adviser's retirement. The ombudsman partially upheld the complaint, finding that while Mr C's decision to retain the mortgage was reasonable given his preference to maintain capital for care costs and contingencies, Brown Shipley was at fault for administrative delays in processing the repayment (7 weeks instead of 4 weeks) and for failing to notify the vulnerable Mr C of his adviser's departure. The ombudsman ordered Brown Shipley to repay the additional month's interest incurred due to the delay, plus 8% interest on that sum, and £300 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Mr C made a conscious decision to retain the Lifetime Mortgage and repay it upon death rather than from capital, as evidenced by suitability letters showing he preferred to maintain capital as a financial cushion for care costs and future contingencies. The mortgage payments were affordable from regular income. However, the ombudsman upheld the complaint regarding the delay in mortgage repayment caused by administrative errors (missing signature and additional forms), which resulted in additional interest charges. The ombudsman also upheld the complaint regarding failure to notify Mr C of his adviser's departure, particularly given his recorded vulnerability status. The ombudsman rejected complaints about charges clarity and statement confusion, finding these were adequately communicated and the statement redirection was eventually actioned.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Brown Shipley & Co Limited, all decisions | 28 | 34% |
| General financial advice, all decisions | 4,578 | 36% |
| Mortgage, all decisions | 24,740 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website