Not upheld: Investment mis-selling complaint against XTB Limited

Decision detail

Summary

Mr V complained that XTB inappropriately allowed him to trade CFDs. XTB assessed appropriateness through a questionnaire where Mr V disclosed 3-5 months of recent non-advised trading experience with leveraged Forex and Shares positions. The ombudsman found that XTB gathered sufficient information to assess appropriateness and that Mr V's demonstrated experience with leveraged instruments justified XTB's conclusion that CFD trading was appropriate for him. The ombudsman concluded XTB reasonably inferred Mr V had sufficient knowledge from his stated experience and was entitled to rely on the application information provided. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied COBS 10A rules requiring XTB to assess whether derivative trading was appropriate based on Mr V's knowledge and experience. The ombudsman found that XTB gathered sufficient information through its questionnaire to fairly assess appropriateness. Mr V's answers demonstrated recent relevant experience with leveraged trading in Forex and Shares. The ombudsman concluded that COBS 10A.2.8G permits firms to reasonably infer knowledge from demonstrated experience, and that XTB acted reasonably in doing so. The ombudsman also found XTB was entitled to rely on the information provided unless it had reason to suspect inaccuracy, which it did not.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website