Upheld: Investment mis-selling complaint against AJ Bell Securities Limited

Decision detail

Summary

Mr S complained on behalf of his limited company that AJ Bell made an error when transferring investments from his personal to limited company account, using book cost instead of total value and providing incorrect price per unit information. He also complained that AJ Bell cannot automatically issue tax information aligned to his October year-end. AJ Bell acknowledged the administrative error, corrected the account, and offered £100 compensation. The ombudsman upheld the complaint but found the £100 offer fair because the error was corrected, no actual financial loss was incurred, and the manual tax pack workaround is a reasonable operational solution.

The Ombudsman's reasoning

The ombudsman upheld the complaint as AJ Bell made an administrative error in processing the transfer. However, no additional remedy was warranted because: (1) AJ Bell corrected the account and reissued statements with accurate figures; (2) no evidence was provided of actual financial loss, additional professional fees, or incorrect tax filings; (3) the corrected book cost figures now allow the accountant to complete tax reporting; (4) the manual workaround for obtaining tax packs at non-standard times is reasonable and proportionate, as firms are entitled to design operationally workable systems provided they communicate clearly; and (5) the £100 offered fairly reflects the inconvenience and frustration caused, which is the only demonstrable detriment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website