UK’s Financial Ombudsman Service (FOS) has upheld a complaint against St James’s Place for giving unsuitable advice to transfer an Isa from an existing provider to SJP.
Last week, FOS has upheld an adjudicator decision in bias of the consumer, who complained that she had lost income and capital and was disappointed with the advice she received, according to Money Marketing.
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FOS said that the client has contacted SJP in 2011 to increase the income she was receiving from her Isa and an investment bond.
According to the suitability letter, the client was attracted to SJP’s approach to investment management and noted an initial charge would be incurred in addition to higher ongoing charges.
Ombudsman Doug Mansell said that the client was unaware about the risks associated with the higher charges.
The FOS decision revealed that SJP has to pay the client the difference between the value of the current Isa and the value it would have had if it had been kept with the previous provider. However, a SJP spokesman said that the difference has not yet been calculated, but he believes the customer has suffered no financial loss.
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By GlobalDataThe spokeswoman added: "We are disappointed the client felt let down, but we believe there has been no detriment and their Isa remains invested with us."
Mansell said: "I am not persuaded it was suitable advice to transfer the Isa from the existing provider to SJP. It is not clear how the change of product provider would achieve the client’s key aim – to improve the income she would receive. I note the suitability letter seems to be silent on this point."
