A financial adviser made a mistake and switched a client’s fund allocation figures around, which resulted in a loss of almost £17,000 for the client, Fos has found.
In its decision, the financial ombudsman said the client contacted Fos after the adviser’s firm offered him partial compensation.
According to the decision, the financial adviser sent Mr V, his client, a letter last year containing agreed changes to his funds to send to his provider. The letter contained changes to the funds that were to be invested in.
Instead of reading Henderson Cautious Managed fund (85 per cent) and JPM Natural Resources (7.5 per cent), the letter stated Henderson Cautious Managed fund (7.5 per cent) and and JPM Natural Resources (85 per cent).
As a result, Mr V’s pension fund value decreased from £75,395.55 to £55,779.56. On complaining to Caerus Financial Services, the firm to which the adviser belonged, he was offered £9,922.13, representing 75 per cent of the loss suffered by Mr V minus 20 per cent tax (£16,536.88), with the firm saying Mr V bore some of the responsibility.
However, Mr V complained to Fos, which has ordered Caerus to pay back all the money lost and £250 for undue distress and inconvenience.
In his decision, ombudsman Philip Miller said: “Mr V was reliant upon the advice and the completion of the forms by a professional firm. I don’t consider Mr V to share accountability for the error.”
Right to reply
A spokesman from Caerus Financial Services said: “The client dealt directly with the provider on a fund switch. It did not go through Caerus. The client asked the adviser for help with the paperwork and a mistake was made. The adviser did not charge the client any fee. The adviser in question is still with Caerus and has not been involved in any other administration errors.”
