Not upheld: lack of transparency regarding foreign exchange fees complaint against Interactive Investor Services Limited

Decision detail

Summary

Mr N complained that Interactive Investor Services Limited failed to clearly disclose a 1.5% foreign exchange fee when he purchased USD denominated shares, claiming he would not have traded had he known about this additional cost. II argued that FX fee information was available through multiple channels including pre-trade preview screens, terms and conditions, and website information. The ombudsman found that II provided sufficient charging information through appropriate 'layering' of key details with cross-references to further information, and that as an execution-only client, Mr N had responsibility to review available information before executing trades. The complaint was not upheld and no remedy was directed.

The Ombudsman's reasoning

The ombudsman applied the principle of 'layering' in financial communications, where key information is provided upfront with cross-references to further details. II provided sufficient charging information through multiple accessible channels before trade execution. As an execution-only client, Mr N had responsibility to review available information before executing trades. The ombudsman found that the FX fee information was not misleading and that II complied with regulatory good practice for transparency.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website