Not upheld: failure to notify of servicing agent changes, failure to proactively offer fund review, delay in unit class conversion complaint against Artemis Fund Managers Limited

Decision detail

Summary

Mr B complained that Artemis failed to notify him when servicing agents on his stocks and shares ISA changed (from Mr L to C1 in 2005, then to C2 in 2008), that he received no service from these agents yet commission was paid to them, and that Artemis failed to proactively contact him about fund reviews or more cost-effective options. He was also concerned that an unauthorised firm remained on his account. The ombudsman found that Mr B likely received notice through regular statements naming the servicing agent, that Artemis was not responsible for servicing agent failures, that commission arrangements were standard practice and not deducted from his account, and that the conversion to a cheaper unit class in April 2021 (launched in March 2020) was a reasonable proactive exercise not subject to regulatory timescales. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Artemis could not provide copies of notification letters, it was more likely than not that Mr B received notice through regular account statements which named the servicing agent. The ombudsman determined that Artemis was not responsible for servicing agent failures and was not required to proactively advise Mr B on fund suitability or switches. The conversion to the cheaper unit class in 2021, while taking approximately one year, was a proactive exercise not subject to a regulatory timescale requirement and was reasonable given the scale of the project affecting many customers. Commission payments were standard practice at the time and were not deducted from Mr B's account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website