Partially upheld: Investment mis-selling complaint against AJ Bell Securities Limited

Decision detail

Summary

Mr S complained that AJ Bell Securities Limited provided him with incorrect information regarding his ability to invest in Bitcoin and Ethereum cryptocurrencies within a newly established SIPP and ISA. Relying on this information, Mr S transferred monies to AJ Bell but discovered upon attempting to invest that such investments were not permitted for retail investors. Mr S was forced to arrange transfers to another provider, causing him stress, worry about market movements, and significant inconvenience. Although AJ Bell acknowledged the error and offered £300 compensation, Mr S disputed this as insufficient. The ombudsman upheld the complaint but found AJ Bell's existing offer of £300 to be fair and reasonable compensation for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that AJ Bell had provided incorrect information and that Mr S had relied on this to transfer funds and establish accounts, subsequently having to unwind these arrangements. While acknowledging the frustration and worry caused, the ombudsman considered that the compensation offered fell within the appropriate bracket for a larger single mistake requiring reasonable effort to sort out, with impact lasting weeks and causing distress and inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website