Not upheld: Account administration errors complaint against Charteris Treasury Portfolio Managers Limited

Decision detail

Summary

Mr T complained that CTPM continued charging fees after he removed its discretionary management permissions in April 2024. Mr T argued that without discretionary authority, CTPM had no basis to charge fees and should refund all fees taken from 30 June 2024 onwards. CTPM maintained that it continued to provide ongoing services including monitoring, administration, and quarterly updates, and that Mr T remained liable for fees under the tripartite agreement. The ombudsman found that CTPM did continue to provide substantial ongoing services despite the removal of discretionary authority, including active investment monitoring (evidenced by a delisting notification), quarterly statements, and administrative functions. The ombudsman concluded it was fair and reasonable for CTPM to continue charging fees and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that removal of discretionary permissions did not terminate Mr T's relationship with CTPM or the services CTPM was providing. While CTPM could no longer make discretionary decisions, it continued to provide ongoing services including account monitoring, administration, quarterly updates, and seeking client instructions when needed. The ombudsman noted that CTPM introduced additional administrative steps to seek client permission before making changes. The evidence showed CTPM was actively monitoring investments (e.g., the delisting notification) and providing quarterly statements. The ombudsman concluded that Mr T ought reasonably to have expected CTPM to continue administering and monitoring his accounts while he arranged to transfer them elsewhere, and that the servicing was not reduced to such an extent that it was unreasonable for CTPM to continue collecting agreed fees.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website