Partially upheld: Service failures generally complaint against Financial Administration Services Limited (trading as Fidelity International)

Decision detail

Summary

Mrs K complained about Fidelity's handling of the closure of the FSSA Japan fund, claiming she was not notified promptly and was unable to make an informed decision about her investment. Fidelity acknowledged it failed to follow up with the fund manager after 19 September 2024 and offered £150 compensation, but declined responsibility for financial losses. The ombudsman found Fidelity made a limited error in not pursuing the fund manager with appropriate diligence, but determined the primary responsibility lay with the fund manager and that Mrs K had not established any financial loss. The ombudsman upheld the complaint in part and confirmed that Fidelity's offer of £150 compensation was fair and reasonable.

The Ombudsman's reasoning

Fidelity made a limited error by failing to follow up with the fund manager for approximately six weeks after 19 September 2024, which fell below the standard of treating customers fairly and breached Consumer Duty obligations to act with appropriate diligence. However, the primary responsibility for communicating the closure rested with the fund manager, not Fidelity. Mrs K has not established any financial loss flowing from Fidelity's error, as the holdings were switched to cash promptly once confirmation was received and the closure itself was not Fidelity's fault. The £150 compensation offered for distress and inconvenience is fair and reasonable given the narrow scope of Fidelity's failing.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website