Not upheld: General financial advice complaint against Charteris Treasury Portfolio Managers Limited

Decision detail

Summary

Mrs T complained that CTPM continued to charge fees after she withdrew its discretionary management permissions in April 2024. She argued that without discretionary authority, CTPM had no basis to charge fees and should refund all fees taken from June 2024 onwards. CTPM maintained it continued to provide various services including account administration, monitoring, corporate action handling, and tax reporting. The ombudsman found that CTPM's continued provision of these services justified the ongoing fees, noting that Mrs T remained aware her accounts were still with CTPM while she arranged transfer to another provider. The complaint was not upheld and no refund was ordered.

The Ombudsman's reasoning

The ombudsman found that removal of discretionary permissions did not terminate Mrs T's relationship with CTPM or the services it provided. CTPM continued to administer and monitor Mrs T's accounts, provide quarterly updates, and perform other services listed in the original agreement. While CTPM could no longer make discretionary decisions, it introduced additional administrative steps to seek client permission when needed. The ombudsman noted that Mrs T was aware her investments remained with CTPM while she arranged transfer elsewhere, and should have reasonably expected ongoing administration and monitoring to continue. Evidence from other customers showed CTPM actively monitored investments and contacted clients about material changes even after discretionary permissions were withdrawn.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website