Cash Investment Decision Reference 2023-0018

• Case Outcome: Partially upheld
• Subject Matter: Cash Investment
• Reference: 2023-0018
• Year: 2023
• Finantial Sector: Investment
• Conducts Complained Of: Maladministration,Delayed or inadequate communication, Failure to process instructions in a timely manner, Switching funds

Decision Ref:

2023-0018

Sector:

Investment

Product / Service:

Cash Investment

Conduct(s) complained of:

Maladministration

Delayed or inadequate communication

Failure to process instructions in a timely manner

Switching funds

Outcome:

Partially upheld

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint concerns the pricing of funds held in an investment policy.

The Complainant’s Case

The Complainant holds an investment policy with the Provider. Prior to January 2020, the

Complainant’s funds were invested in a commercial property fund.

On Friday 24 January 2020, the Complainant signed a fund switch instruction, requesting

that the Provider move the Complainant’s investment out of the commercial property fund

and into a cash-oriented fund “with immediate effect”.

The Complainant’s financial adviser and representative in this complaint (‘the

Representative’) emailed a copy of this instruction to the Provider on Monday 27 January

2020 at 11.26 AM. The Complainant notes that the Provider received this instruction before

the close of business on Monday 27th. The Complainant submits that the fund switch was

executed at an incorrect unit price for the commercial property fund.

The Complainant quotes the condition of his investment policy with the Provider, which

states that the Provider will carry out instructions “based on the bid value of units on the

Valuation Date immediately after we received your instructions”. The Complainant states

that it is the policy of the Provider to set fund prices at the end of every business day. He

submits that because his instruction was received by the Provider on Monday 27th January

2020, the immediate next valuation date was close of business on the same day.