Not upheld: failure to provide ongoing advice service; lack of documented consent for representative to act on client's behalf complaint against JM Independent Financial Advisers Ltd

Decision detail

Summary

Mrs D complained that JM failed to provide the ongoing advice service she was paying for through annual fees, specifically that review meetings were held without her attendance. JM had charged Mrs D for ongoing advice including six-monthly reviews, but these meetings were conducted with Mr D only, with review letters signed by him on behalf of both parties. The ombudsman found that while JM should have obtained formal documented consent from Mrs D for this arrangement, the evidence indicated she was aware of the practice and satisfied with it until her separation from Mr D in 2023. The complaint was not upheld as Mrs D received the bulk of the benefits of the ongoing service and did not challenge the arrangement until circumstances changed.

The Ombudsman's reasoning

The ombudsman found that JM had clearly set out the ongoing advice service and its cost in the signed client agreement. While JM failed to obtain formal documented consent from Mrs D for Mr D to act on her behalf, the evidence indicated Mrs D was aware of this practice. The written review letters addressed to both parties, Mrs D's signature on drawdown forms, and her own May 2023 email acknowledging that Mr D had been meeting JM to review their joint finances all suggested Mrs D knew of and was satisfied with this arrangement. The email exchanges from 2019 further demonstrated Mrs D was aware of the practice but did not challenge it until after her separation. The ombudsman concluded that Mrs D received the bulk of the benefit of JM's ongoing service and was likely satisfied with it until circumstances changed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website