Not upheld: Account administration errors complaint against Trading 212 UK Limited

Decision detail

Summary

Mr K complained that Trading 212 UK Limited failed to properly notify him of a change from automatic interest payments to an opt-in model for cash held in Stocks and Shares ISA accounts, resulting in him losing over £500 in interest between February 2024 and August 2025. Trading 212 had sent an email in December 2023 explaining the change would take effect from February 2024 and updated its website, FAQs, and terms and conditions, but Mr K did not see the email and only learned of the change when informed by a friend. The ombudsman found that Trading 212 had met its regulatory obligations under FCA guidance for unilateral variations by providing clear information, stating reasons, giving 30 days' notice, and allowing customers to opt-in or exit without charge. The complaint was not upheld and no remedy was directed.

The Ombudsman's reasoning

The ombudsman applied FCA guidance on unilateral variations to terms and conditions, which requires four steps: transparent variation terms, reasons for change, adequate notice (30-90 days), and option to exit without charge. Trading 212 satisfied all four steps by: (1) clearly outlining the change in a side-by-side comparison document; (2) explaining the reasons (better interest rates and regulatory requirements for investment products); (3) providing 30 days' notice (from 13 December 2023 to 11 January 2024 implementation); and (4) allowing customers to opt-in or opt-out at any stage with no fees. The ombudsman acknowledged Mr K's frustration but found that additional in-app communication could constitute financial advice, which would be inappropriate for an execution-only platform. The ombudsman concluded Trading 212 acted fairly and in line with regulatory expectations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website