Not upheld: misleading information / inaccurate data disclosure complaint against Interactive Investor Services Limited

Decision detail

Summary

Ms Y invested £167,000 in an RLST fund based on Interactive Investor displaying a 5.44% dividend yield, but later discovered the fund's official website showed 4.34%. Interactive Investor acknowledged the discrepancy but attributed it to third-party data providers and offered £150 compensation. Ms Y rejected this, arguing the inaccuracy caused material disadvantage and that Interactive Investor breached its obligations under COBS 4.2.1R and the Consumer Duty. The ombudsman found Interactive Investor fell short in service but did not uphold the complaint, determining no quantifiable financial loss occurred since Ms Y sold the fund weeks later at a gain of approximately £528, and the £150 compensation was fair for the distress and inconvenience caused.

The Ombudsman's reasoning

While Interactive Investor fell short in providing clear and not misleading information, and its representative's response was clumsily phrased, the ombudsman found no quantifiable financial loss because yield rates do not guarantee future returns, Ms Y identified the discrepancy quickly, mitigated her position by selling the fund, and ultimately made a positive return. The ombudsman applied the principle of putting the consumer back in the position they would have been but for the mistake, and found the £150 compensation already offered appropriately reflected the distress and inconvenience caused, without awarding additional compensation for time spent or opportunity costs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website