The Financial Ombudsman Service (FOS) has criticised a high street bank for improperly classifying a risk-averse couple as ‘experienced' investors, and ordered it to re-calculate its initial offer of compensation.
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...
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