FOS finds against Chartered firm in ARM ruling

A Corporate Chartered financial planning business has been told to compensate a client who was recommended to invest £50,000 in a bond based on senior US life settlement policies, following a final ruling by the Financial Ombudsman Service (FOS).

Cheshire-based Greystone Financial Services has been ordered to pay the client the difference between the performance of her investment and that of a benchmark comprising 50% the FTSE WMA Stock Market Income Total Return Index and 50% the average rate from fixed rate bonds. The company has also been told to pay the client, a 'Mrs Y' who was 48 at the time of the investment in 2008, £200 for distress caused. The Ombudsman ruled the advice represented a mis-sale as the client stated she was only willing to take a low risk, and that Greystone identified this by citing her attitude as 'ca...