Not upheld: Account administration errors complaint against Charteris Treasury Portfolio Managers Limited

Decision detail

Summary

Mr and Mrs T complained that Charteris sold assets from their jointly held offshore investment bond without permission to settle its fees after they withdrew discretionary management in July 2024. Charteris continued charging fees and sold holdings on 2 July 2025 to pay those fees, with settlement occurring after the assets had transferred to a new adviser on 4 July 2025. The ombudsman found that Charteris was entitled to continue charging fees as it provided ongoing administration and custody services, and the Investment Management Agreement explicitly authorised fee deduction without further reference to clients. The ombudsman concluded the asset sale was reasonable and timely, made while Charteris still controlled the assets, and caused no detriment to Mr and Mrs T. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that terminating the discretionary mandate did not end Mr and Mrs T's relationship with Charteris, as the firm continued to provide administration, custody and monitoring services. The Investment Management Agreement explicitly authorised Charteris to deduct fees without further reference to the client where assets were held in Charteris' name. The agreement also permitted settlement of fees upon termination. The instruction to sell assets was made on 2 July 2025, before the formal change of adviser on 4 July 2025, when Charteris still had control of the assets. The ombudsman considered it reasonable for Charteris to settle outstanding fees upon notification of the transfer, and found no detriment to Mr and Mrs T as the fees would have been payable regardless of timing.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website