Not upheld: Administration of deposit and failure to invest funds automatically complaint against FIL Investments International

Decision detail

Summary

Mr C deposited £18,200 into his ISA with FIL Investments International in April 2025, expecting it to be automatically invested in a fund. The money remained in a cash account until mid-June 2025 when Mr C discovered this and complained that FIL should have proactively informed him. FIL, an execution only platform, had sent a letter stating the funds were 'now available for investment' and instructing Mr C to log in to invest, and had previously explained this process to Mr C in 2023. The ombudsman found FIL acted fairly and reasonably, as they clearly communicated the required steps and holding funds in cash pending investment decisions is standard practice. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that FIL's execution only service model means they are not responsible for making investment choices for account holders. The letter sent by FIL clearly communicated that additional steps were required to invest the funds, and this process had been previously explained to Mr C in 2023. The ombudsman rejected the argument that FIL breached a duty of care by not proactively notifying Mr C that funds were held in cash, as this is a normal part of the investment process and the account dashboard clearly distinguished between cash and investments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website