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.
