Not upheld: Investment mis-selling complaint against KW Wealth Planning Limited

Decision detail

Summary

Mr and Mrs P complained that KWFP made a significant change to their discretionary managed investment portfolio by migrating from KMPS to IMPS following KWFP's acquisition of IBOSS, without their permission or adequate consultation. They objected to the lack of detailed communication, the email-only notification, and the absence of alternative options presented. KWFP explained the migration was a gradual process over 2022-2023 with no associated fees, and that the portfolio remained suitable for the clients' risk profile. The ombudsman found that discretionary management mandates provide sufficient authority for such changes, that email communication was reasonable, and that the portfolio remained appropriately aligned with the clients' objectives, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman concluded that discretionary management mandates provide wide-ranging powers to make changes to funds, approach, and personnel without seeking client agreement, provided the overall portfolio remains suitable to the client's attitude to risk. KWFP's gradual migration over multiple tax years with no associated fees, combined with the portfolio remaining broadly similar in profile and suitable for the clients' risk profile, fell within the scope of discretionary management. Email communication was reasonable given the clients' stated preference for email correspondence. The clients had the opportunity to seek clarification but did not do so until making their complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website