Not upheld: unfair account closure and position termination following KYC review complaint against Saxo Capital Markets UK Ltd (trading as Saxo Markets)

Decision detail

Summary

Mr J and Mrs J complained that Saxo Capital Markets unfairly closed their trading account and terminated their positions following a KYC review that began in February 2024. Mr J argued the review was unnecessary and that the final information requested was impossible to provide. Saxo maintained it acted in accordance with its terms and regulatory obligations. The ombudsman found that Saxo properly conducted the review as part of its ongoing regulatory responsibilities, reasonably explained why Mr J's submission was deficient, provided appropriate notice of closure, and acted fairly throughout the process. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Saxo acted within its regulatory obligations and contractual rights. The firm properly conducted a KYC review as part of its legal responsibilities, which are ongoing and not limited to account opening. Saxo provided reasonable notice of deficiencies in Mr J's submission and two months' notice of closure. The ombudsman was satisfied that Saxo's communication on 13 January was received (evidenced by portal login) and that the firm's explanation for rejecting the submission was reasonable. The ombudsman noted it is not within the FOS remit to determine what information a firm should accept or to review the firm's procedures, only whether procedures were applied fairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website