Mis sold ISA stocks and shares

maebel63

Hi

I had a stocks and shares ISA from the year 2000 to 2008. I took a loss of £400 when I surrendered the policy8 years and 5 months later. I recently logged a complaint. As the company could not show why the recommended fund was sauitable they are refunding the capital plus interest. There have been 2 different calculations of interest. For the term of the policy this is Bank of England rate plus 1%. This seems rather low as in todays values we would be looking at 1.5% and I am getting 4% on savings, instant access with my bank. The 2nd part of the interest calculated from surrendar date to now has been calculated at Court rate of 8% simple interest. Any advice would be appreciated. Thank you:j

magpiecottage

That is how the Financial Ombudsman Service would instruct them to calculate interest.

You can go to FOS but it will probably dismiss your complaint on the basis that a fair offer has been made to you.

maebel63

many thanks for your reply, do you know why B of E plus 1% is paid until surrender date, then from surrender date to present time, court rates apply?
I have also asked if they would consider a payment for stress and time taken to go back over 8 years of paperwork. The company have refused
"We appreciate that you have had to make time to raise your complaint and review paperwork etc. We do not however pay redress for the complainant having to raise a complaint and their efforts in doing so. Distress & Inconvenience payments are paid when we beleive the complainant as suffered due to the actions of the adviser or if our investigation as caused stress or inconvenience. The poor returns on a investment however is not considered grounds for this payment to be made and our investigation as not caused reason for this payment"

Thank you once again for your assistance

Maebel

maebel63

ps there reply also indicates that they have assumed a rate :-
"There is no compelling evidence as to which deposit account might have been used, so we have considered it fairest to assume that the rate of return on the original capital would have been equivalent to 1% above the Bank of England base rate compounded yearly to the date the policy was surrendered."

Will the Ombudsman assume the same rate?

thank you again

magpiecottage

maebel63 wrote: »

ps there reply also indicates that they have assumed a rate :-
"There is no compelling evidence as to which deposit account might have been used, so we have considered it fairest to assume that the rate of return on the original capital would have been equivalent to 1% above the Bank of England base rate compounded yearly to the date the policy was surrendered."

Will the Ombudsman assume the same rate?

thank you again

FOS will not only use the same basis but the same words!