Client complained about under performance of investments made at the solicitor's discretion
Mr P inherited a trust from a will.
Under the terms of the will, his trustee, a solicitor, could invest money at their discretion on his behalf.
The trustee made some low-risk investments after getting independent financial advice, but they failed to perform well as expected.
Mr P held the trustee responsible and lodged a formal complaint against them.
Mr P’s trustee was exercising discretion given to her by the trust’s terms. Being a solicitor and not a financial expert, it was reasonable for her to seek and follow independent financial advice about investing Mr P’s money.
We dismissed Mr P’s complaint under 5.7 h of our Scheme Rules as Mr P's trustee was exercising discretion given to her by the Trust's terms. Being a solicitor and not a financial expert, it was reasonable for her to seek and follow independent financial advice about investing Mr P's money. We concluded that she couldn't be held accountable for under-performing investments.
