Upheld: ISA / savings administration complaint against J.P. MORGAN PERSONAL INVESTING LIMITED
Financial Ombudsman decision DRN-5998576 of 2025-12-16T00:00:00+00:00. ISA / savings administration complaint against J.P. MORGAN PERSONAL INVESTING LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-5998576 |
|---|---|
| Decision date | 2025-12-16T00:00:00+00:00 |
| Firm | J.P. MORGAN PERSONAL INVESTING LIMITED |
| Product | Investment |
| Claim type | ISA / savings administration |
| Outcome | Upheld |
| Remedy | J.P. Morgan must: (1) request HMRC to backdate Miss M's £20,000 ISA contribution for 2023/24 tax year; (2) if HMRC does not respond within one month of Miss M accepting this decision, pay compensation calculated as the CGT liability on £20,000 growing at 7.5% annually for 20 years at 24% marginal CGT rate, with £3,000 CGT allowance deducted; (3) pay total of £400 inconvenience compensation (£200 already paid plus additional £200 goodwill payment); (4) offset any previous payments made relating to CGT liability against final redress payment. |
Summary
Miss M attempted to transfer £20,000 into a stocks and shares ISA for the 2023/24 tax year via J.P. Morgan's live chat in March 2024. J.P. Morgan's agent failed to explain that she needed to 'redistribute' the funds to move them from her General Investment Account into an ISA, causing her to miss the tax year deadline. Miss M discovered the error in November 2024. J.P. Morgan acknowledged its failure and initially offered £100 compensation plus reimbursement of future CGT. The ombudsman upheld the complaint, directing J.P. Morgan to request HMRC to backdate the ISA contribution, or if refused within one month, to pay compensation calculated on a 20-year holding period reflecting Miss M's long-term investment strategy, plus £400 total inconvenience compensation.
The Ombudsman's reasoning
The ombudsman found that J.P. Morgan's failure to explain the redistribution process caused Miss M to miss the 2023/24 ISA deadline. The best resolution would be HMRC backdating the ISA contribution. However, given HMRC's previous rejection and uncertainty about timing, a one-month deadline was imposed after which J.P. Morgan must pay compensation. The compensation formula assumes 20-year holding period (not the standard 10 years) based on Miss M's demonstrated long-term investment strategy, 7.5% annual growth, 24% CGT rate, and £3,000 CGT allowance. The ombudsman rejected arguments for discount factors and special income tax treatment, finding the standard formula fair and reasonable. Additional £200 goodwill payment was approved for inconvenience.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| J.P. MORGAN PERSONAL INVESTING LIMITED, all decisions | 2 | 50% |
| ISA / savings administration, all decisions | 1,920 | 26% |
| Investment, all decisions | 14,114 | 34% |
Source
Read the original decision on the Financial Ombudsman Service website