Not upheld: failure to proactively offer alternative investment options; alleged unsuitable advice retention complaint against St James's Place Wealth Management Plc (SJP)

Decision detail

Summary

Mr and Mrs B complained that their SJP adviser failed to proactively offer alternative investment options when they raised concerns about the performance of their Rowan Dartington (RD) ethical investments in April 2023, resulting in financial loss. The couple had transferred their ISAs to RD in 2018 and their pensions to a Curtis Banks SIPP investing through RD in December 2020 to achieve full ethical investment. When performance disappointed, the adviser did not suggest alternatives until April 2024, by which time they claimed the SJP Sustainable fund and other ethical investments had performed significantly better. The ombudsman found the adviser acted reasonably by not suggesting alternatives immediately, as the investments were long-term and the only comparable SJP ethical fund was unsuitable, and that appropriate information was provided when concerns persisted in November 2023.

The Ombudsman's reasoning

The ombudsman reasoned that it was not unreasonable for the adviser not to suggest alternatives when Mr and Mrs B first raised performance concerns in April 2023, as the investments were long-term and only two years into the transfer. The SJP Sustainable fund was unsuitable due to higher equity exposure and not a 'like for like' comparison. When concerns persisted in November 2023, the adviser provided appropriate context and options. The adviser did provide enough information for Mr and Mrs B to consider their options and request further discussions, which they eventually did in March 2024, at which point specific SJP alternatives were suggested. The adviser was not required to proactively suggest specific alternatives earlier.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website