Not upheld: misleading information and service failure in account merger process complaint against Vanguard Asset Management, Ltd

Decision detail

Summary

Mr N complained about Vanguard's handling of a merger between his GIA and ISA accounts. He was assured that nothing would change, including share quantities and investment details, but after the merger completed in May 2025, he discovered the displayed unit prices reflected the merger date rather than original purchase dates and performance history had reset. Vanguard acknowledged providing incorrect and incomplete information and that it became aware of this before completion but failed to correct it. Although no financial loss occurred and the underlying investment position remained unchanged, the ombudsman found Vanguard's service fell short. The £200 compensation already paid was determined to be fair and reasonable for the distress and inconvenience caused by the misleading information.

The Ombudsman's reasoning

The ombudsman found that Vanguard provided incorrect and incomplete information about what would change during the merger, specifically failing to disclose that performance history would reset and unit prices would reflect the merger date. Mr N made clear that preserving how his investments were presented was important, and had he received accurate information, he may not have proceeded. Although Vanguard became aware of the misinformation before completion, it failed to correct it or give Mr N an opportunity to reconsider. However, since the underlying investment position remained unchanged and no financial loss occurred, compensation for distress and inconvenience was the appropriate remedy rather than system reversal.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website