Not upheld: Account closure without notice complaint against Freetrade Limited

Decision detail

Summary

Mr N complained that Freetrade unfairly closed his trading account, resulting in financial loss and distress. Freetrade notified him of the closure on 29 October 2024 with a termination date of 28 November 2024, and Mr N was able to withdraw his shares on 7 November 2024. An initial FOS investigator upheld the complaint, but after Freetrade provided confidential evidence, revised findings determined the closure was made fairly. The ombudsman found that Freetrade, as a regulated financial business, is entitled to close accounts in accordance with regulatory obligations and account terms, and the confidential evidence supported a fair decision. Although Mr N experienced inconvenience and administrative issues, the ombudsman did not uphold the complaint or award compensation.

The Ombudsman's reasoning

Freetrade is strictly regulated and required to carry out ongoing monitoring of business relationships, which may necessitate account restrictions or closures. The account terms and conditions permit Freetrade to close accounts in certain circumstances. Freetrade provided confidential evidence demonstrating the decision was made fairly in accordance with its risk guidance and regulatory considerations. While Mr N experienced inconvenience and administrative issues, he was able to withdraw and transfer his funds, and the service shortcomings do not change the legitimacy of the closure decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website