Not upheld: Account administration errors complaint against Mattioli Woods Limited

Decision detail

Summary

Mr C and Mrs C complained that Mattioli Woods failed to progress the closure of their offshore investment bond and caused a capital gains tax liability. The bond was recommended for full encashment in early 2024 with the intention to surrender it within the tax year. Although Mattioli Woods acted promptly in most respects, the bond was not fully surrendered by year-end due to delays from company U and an income distribution received on 2 April. Additionally, Mattioli Woods failed to identify that regular withdrawals were being debited to a cash account with company U, resulting in an incorrect surrender value in their March report. The Ombudsman found Mattioli Woods not responsible for the delays but upheld their £250 offer as fair compensation for the surrender value error.

The Ombudsman's reasoning

The Ombudsman found that Mattioli Woods did not cause significant delays in the surrender process. The firm chased company U appropriately, forwarded information promptly (within two working days), and sent signed forms to company U the next working day. The delay in company U requesting funds and the timing of the income distribution on 2 April were outside Mattioli Woods' control. However, Mattioli Woods failed to identify the negative cash account balance error when calculating the surrender value and missed the opportunity to correct this when queried in mid-March. This error, while not causing financial loss, caused frustration and warranted compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website