The UK’s Financial Ombudsman Service (FOS) today ruled in favour of Rathbones, the discretionary fund manager, following a client case that alleged the provider mismanaged a Self-Invested Person Pension (SIPP) portfolio.
The claimant, known as Mr B, said: “I do believe that the DFM model was, theoretically, right for us, but the execution by Rathbones has proved pretty disastrous and, in turn, has soured the DFM experience for us.”
He added: “The bottom line of my complaint about Rathbones’ performance is that the growth achieved has never reflected anything like either what was realistically possible in the market, or anything like Rathbone’s declared definition of its aims for our risk profile.”
Mr B and his wife started using Rathbones in 2009, when they invested an initial £125,000. In 2013 they invested £160,000, also with Rathbones. The couple described the results as “pretty disastrous”, claiming that the income was far wide of Rathbones’ 10% average target. Rathbones denied any such target was specified.
Following today’s ruling, a Rathbones spokesperson said: “We strive to do the best for every client. On the rare occasion that we do not meet a client’s expectations, we have an independent complaints process and ultimately if a client decides to refer the case to the ombudsman, we will respect the decision of the ombudsman.”