Bonds Decision Reference 2022-0018

Case OutcomeRejected
Subject MatterBonds
Reference2022-0018
Date10 January 2022
Conducts Complained OfMis-selling (investment),Delayed or inadequate communication, Dissatisfaction with final fund value
Finantial SectorInvestment
Decision Ref:
2022-0018
Sector:
Investment
Product / Service:
Bonds
Conduct(s) complained of:
Mis-selling (investment)
Delayed or inadequate communication
Dissatisfaction with final fund value
Outcome:
Rejected
LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN
This complaint relates to an investment product and the suggested overcharging,
maladministration and inadequate complaints handling by the Provider.
The Complainants’ Case
The Complainants submit that in May 2016 they invested in an investment bond product,
offered by the Provider. In their complaint form to this office, the Complainants confirm that
the product itself was sold to them by another financial service provider, not by the Provider.
The complaint concerns an investment period between May 2016 and June 2018. The
Complainants say that during this period, their investment bond was invested in a [Type
Redacted] Fund. The Complainants assert that the fund is rated by the Provider at the lowest
end of its risk indicators, with the stated aim being to preserve capital. They assert that the
fundamental aim of the fund to preserve capital was not achieved by the Provider and the
Complainants’ bond decreased in value over this period net of exit tax, by approximately
4%.
The Complainants state that the Provider applied a management charge of 1% which they
submit is excessive for a fund of this nature which requires a lower level of management,
compared to an actively managed fund consisting of a portfolio of shares, property, bonds
and other investment.

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