Partially upheld: Service failures generally complaint against Rathbones Investment Management Limited trading as Rathbones
Financial Ombudsman decision DRN-6335840 of 2026-06-18T00:00:00+00:00. Service failures generally complaint against Rathbones Investment Management Limited trading as Rathbones. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6335840 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | Rathbones Investment Management Limited trading as Rathbones |
| Product | Pension |
| Claim type | Service failures generally |
| Outcome | Partially upheld |
| Remedy | Rathbones must refund OACs for October 2012 to January 2016 plus 8% simple interest from date paid to settlement; refund OACs for missed review in 2017 and all OACs deducted after December 2021 plus 8% simple interest; pay £750 compensation for distress and inconvenience; provide clear calculation details to Mr W; handle any required income tax deduction and provide tax deduction certificate if requested. |
Summary
Mr W complained that Rathbones failed to disclose a third-party introducer fee and deducted ongoing adviser charges (OACs) for services not provided. Rathbones conceded that no advice was provided between October 2012 and January 2016 and offered partial refund. The ombudsman upheld the complaint regarding OACs, directing refunds for the period without advice and all charges after Mr W's December 2021 cancellation instruction, plus 8% interest and £750 compensation. The complaint regarding the undisclosed introducer fee was not upheld, as the ombudsman found no financial detriment and concluded Mr W would have proceeded with the investment regardless of disclosure.
The Ombudsman's reasoning
The ombudsman found that while the third-party introducer fee was not disclosed, there was no financial detriment to Mr W as the fee was not deducted from his investment funds and was borne by Rathbones itself. On the balance of probabilities, even if Mr W had been informed of the fee, he would likely have proceeded with the investment advice given his need for regulated advice and significant investment sums. However, the ombudsman upheld the complaint regarding OACs, finding that Rathbones should refund charges for the period when no advice was provided (October 2012 to January 2016) and all charges deducted after Mr W's explicit instruction to cancel in December 2021, plus a missed review in 2017.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Rathbones Investment Management Limited trading as Rathbones, all decisions | 1 | 50% |
| Service failures generally, all decisions | 34,193 | 32% |
| Pension, all decisions | 15,602 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website