Partially upheld: Investment mis-selling complaint against Charteris Treasury Portfolio Managers Limited

Decision detail

Summary

Mr C complained that Charteris continued to trade on his investment account and collect fees after he revoked its discretionary management permissions in April 2024. Charteris sold investments in May 2024 without seeking permission to fund Mr C's regular income payment while he was on holiday abroad. The ombudsman found Charteris erred in not seeking permission but concluded Mr C would likely have agreed to the sale, so no financial loss occurred. The ombudsman awarded £150 compensation for distress and inconvenience but rejected Mr C's complaint about continued annual management charges, finding the relationship continued and the work remained substantially similar.

The Ombudsman's reasoning

The ombudsman found that while Charteris erred in not seeking permission before the May 2024 sale, Mr C likely would have agreed to the sale had he been asked, as it was necessary to fund his regular income payment and consistent with past practice. The error caused distress and inconvenience by occurring while Mr C was on holiday, warranting compensation. However, the ombudsman rejected the complaint about continued AMCs, finding that Mr C's termination of discretionary permissions did not end the entire relationship with Charteris, the work performed remained broadly similar, and Mr C expected the arrangement to continue pending appointment of a new advisor.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website