Upheld: unsuitable investment advice / mis-selling complaint against EFG Private Bank Limited, trading as EFG Harris Allday
Financial Ombudsman decision DRN-6312234 of 2026-05-29T00:00:00+00:00. unsuitable investment advice / mis-selling complaint against EFG Private Bank Limited, trading as EFG Harris Allday. Outcome: Upheld.
Decision detail
| Reference | DRN-6312234 |
|---|---|
| Decision date | 2026-05-29T00:00:00+00:00 |
| Firm | EFG Private Bank Limited, trading as EFG Harris Allday |
| Product | pension (SSAS/SIPP) |
| Claim type | unsuitable investment advice / mis-selling |
| Outcome | Upheld |
| Remedy | EFG Private Bank Limited, trading as EFG Harris Allday, must: (1) Compare the actual value of Mr E's pension funds as at the date of transfer (January 2025) with their notional value had they been invested in a benchmark of 50% FTSE UK Private Investors Income Total Return Index and 50% average fixed rate bonds; (2) If there is a loss, apply that percentage loss to the current value of Mr E's pension fund as at the date of the decision to calculate the compensation amount; (3) Pay compensation into Mr E's SIPP to increase its value by the loss amount, allowing for charges and tax relief; (4) If unable to pay into the pension plan, pay directly to Mr E with a notional deduction for income tax (presumed 20% marginal rate, or 15% overall if tax-free lump sum available); (5) Make payment within 28 days of Mr E's acceptance; (6) Add 8% simple interest per annum from the date of the decision to the date of settlement if payment is not made within 28 days. |
Summary
Mr E complained that his SSAS pension portfolio managed by EFG Harris Allday was unsuitable due to excessive risk exposure. Initially managed by his IFA as a medium risk portfolio, Mr E became EFG's direct client in July 2020 and completed an investor profile questionnaire scoring 19 (low-medium risk). During a clarification call, Mr E agreed to a 'cautious, medium risk strategy' despite his written questionnaire responses. However, the ombudsman found that the actual portfolio maintained 68-83% in medium to high risk assets (equities, alternatives, commercial property) with only 17-32% in lower risk assets, inconsistent with Mr E's stated preference for a cautious approach. The ombudsman upheld the complaint, finding the portfolio represented medium to medium-high risk rather than cautious medium risk, and directed EFG to calculate losses using a benchmark of 50% FTSE UK Private Investors Income Total Return Index and 50% fixed rate bonds, paying compensation with notional tax adjustments.
The Ombudsman's reasoning
The ombudsman concluded that while Mr E's written questionnaire responses and discussions were somewhat ambiguous regarding exact risk level, the totality of evidence indicated Mr E wished to invest in a medium risk strategy at the cautious end of the scale. The GATR score of 19 (low-medium, one point short of medium) combined with Mr E's explicit statements about wanting a 'cautious' or 'very cautiously managed' approach supported this interpretation. Although EFG's approach to clarifying Mr E's intentions through discussion was appropriate and demonstrated good 'know your client' practices, the actual portfolio construction did not reflect this cautious positioning. The portfolio maintained 68-83% in medium to high risk assets (equities, alternatives, commercial property) with only 17-32% in lower risk assets (fixed interest, cash), which was inconsistent with a cautiously managed medium risk strategy. The PRS score of 3 represented medium risk, not the lower end of medium risk suitable for Mr E. While individual investments within a balanced portfolio may have varying risk ratings, the overall portfolio composition was too heavily weighted towards higher risk assets for someone with Mr E's stated preferences. The ombudsman rejected EFG's argument that the portfolio was appropriately managed, finding instead that it represented a medium to medium-high risk portfolio rather than the cautious medium risk Mr E required.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| EFG Private Bank Limited, trading as EFG Harris Allday, all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website