Not upheld: General financial advice complaint against Lumon Pay Ltd

Decision detail

Summary

E, a limited company represented by its director Mrs H, complained that Lumon Pay provided unauthorised financial advice on foreign forward exchanges, resulting in a £4,000 loss. Mrs H claimed she only intended to commit to one forward exchange but was influenced by the agent to commit to a second. Lumon Pay's terms and conditions explicitly stated the firm does not provide advice on any matter. The ombudsman found that the agent's statements were market information and factual observations rather than recommendations, and that Mrs H's decision to proceed with both transactions was her own choice. The complaint was not upheld, and no compensation was ordered.

The Ombudsman's reasoning

The ombudsman found that Lumon Pay's terms and conditions clearly stated the firm does not provide advice on any matter, including the merits of currency transactions. E had accepted these terms prior to the transactions. The agent's statements during the call were characterised as market insight and factual observations rather than recommendations or advice. The agent did not tell Mrs H what she should or shouldn't do. Mrs H's decision to commit to the second forward exchange was her own choice, made after weighing her options, and any resulting loss did not constitute an error by Lumon Pay.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website