FOS scolds bank for tagging risk-averse couple as 'experienced' investors

Bank of Scotland (BoS) misled the investors of the risks of its ISA Investor for Growth products, into which the couple both invested £4,000, according to an earlier FOS ruling. However, the FOS has again intervened to state BoS must improve its offer of compensation: while the bank initially compared the performance of the clients' investments with its cautious managed fund, the FOS suggested a better comparator would be risk-free fixed rate bonds. The bank had suggested the couple were in a position to take a low risk with their funds, and that they were not ‘nil risk' investors, bu...