Couple win fight against wealth firm over £200k fund transfers

Added 4th August 2017

A financial Ombudsman has backed a married couple’s complaint against Attivo Financial Services for the unsuitable transfer of investments worth around £200,000.

Couple win fight against wealth firm over £200k fund transfers

The couple, known only as Mr and Mrs J, each had separate complaints against Attivo over three investment transfers upheld by the Ombudsman in June this year.

Their personal wealth in 2013 was around £2m, with “significant investments and cash reserves” held according to Ombudsman documents and they claimed the transfers were made without their consent after signing incomplete forms in good faith.

After discovering the transfers in 2014, the couple complained they had not approved the transfer and felt the new funds were riskier and would not protect capital.

Attivo, which sold its investment management arm to Quilter Cheviot in January, said both Mr and Mrs J had known about the transfers and argued they were suitable for the couple.

It added redress would be “excessive and disproportionate” as it didn’t reflect the 10-year terms of the new funds, longer than the original funds held.

Regardless of whether the couple approved the transfer or not, Ombudsman Roy Kuku judged the new investments were unsuitable for Mr and Mrs J.

Standing by a statement in the provisional decision on both complaints, Kuku said the dispute over what was or was not consented to was not “necessary to address”.

“Attivo says it transferred the three funds because it considered the transfers suitable for Mr [and Mrs] J and it is my conclusion that the transfers were not suitable for [them],” he added.

Attivo was ordered to pay compensation to both Mr and Mrs J for any capital losses when the funds were sold in 2013, any early surrender penalties incurred and charges incurred during the initial transfers.

The couple will also be compensated for the income they would have received from the original funds between 2013 and the date the new funds were sold.  

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Louise Hill

Senior Reporter

Louise joined Portfolio Adviser in December 2016 as one of the editorial team’s news reporters based in London. Originally from Liverpool, she is an NCTJ-qualified journalist and began her career in 2014 working on local newspapers.

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel, Edinburgh

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Sofitel St James, London  

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall

OTHER STORIES FROM LAST WORD...