Upheld: Irresponsible investment facilitation; inadequate pre-investment disclosure; misleading information about financial consequences complaint against National Westminster Bank Public Limited Company (NatWest)
Financial Ombudsman decision DRN-6364927 of 2026-05-18T00:00:00+00:00. Irresponsible investment facilitation; inadequate pre-investment disclosure; misleading information about financial consequences complaint against National Westminster Bank Public Limited Company (NatWest). Outcome: Upheld.
Decision detail
| Reference | DRN-6364927 |
|---|---|
| Decision date | 2026-05-18T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company (NatWest) |
| Product | Stocks and Shares ISA / Cash ISA |
| Claim type | Irresponsible investment facilitation; inadequate pre-investment disclosure; misleading information about financial consequences |
| Outcome | Upheld |
| Remedy | NatWest must pay: (1) £1,578.73 for the financial loss incurred; (2) lost contractual interest on £1,578.73 from the point the loss was crystallised to settlement date (calculated based on interest rates applicable to the Stocks and Shares ISA before transfer and Cash ISA after transfer); (3) £300 compensation for distress and inconvenience (additional £150 on top of the £150 already offered by NatWest). |
Summary
Mr V complained about NatWest's conduct in setting up a Stocks and Shares ISA and subsequently transferring it to a Cash ISA, resulting in a £1,578.73 loss. Mr V felt rushed into the investment after receiving literature only 30 minutes before a 15-20 minute call in which he made the decision, and was given misleading information about the financial consequences of the transfer. The ombudsman upheld the complaint, finding NatWest breached FCA COBS regulations by failing to provide key mandatory investment documents in good time before facilitating the investment, and by providing misleading information about potential value changes. The ombudsman ordered NatWest to pay the financial loss of £1,578.73, lost interest, and £300 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that NatWest breached FCA COBS regulations by failing to provide key mandatory investment information in good time before facilitating the investment. Although only 45-50 minutes elapsed between sending literature and the investment decision, and the literature was sent while Mr V was at work, this was insufficient time to properly consider five portfolio funds, multiple investment routes, investment styles, projections, risk profiles, and fees. The ombudsman rejected NatWest's argument that Mr V should have independently sought out documents, noting that NatWest had promised to send information and arrange further guidance, creating an expectation of a structured process. The ombudsman also found that Mr V was given misleading information about the financial consequences of the transfer, being told to expect only 'slight' changes when a 7.5% loss occurred. The ombudsman concluded that but for these failings, Mr V would not have made the investment or would have waited before transferring to cash.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company (NatWest), all decisions | 112 | 8% |
Source
Read the original decision on the Financial Ombudsman Service website