Ombudsman pays out pounds 40,000

INVESTORS were paid pounds 40,700 last year as a result of complaining to the Investment Ombudsman, Richard Youard, writes Vivien Goldsmith.

In his annual report, published yesterday, Mr Youard said the amount claimed jumped from pounds 480,000 last year to pounds 1.7m. But this included four cases over the pounds 100,000 limit.

The typical claim was around pounds 5,000 and the smallest was for pounds 5, involving cash held in a personal equity plan for nine days without interest. Mr Youard rejected the claim because the investor had signed an agreement that no interest would be paid. The smallest successful claim, which involved the cancellation of a Pep, was for pounds 85.

The two largest succcesful claims were for pounds 10,000. One was from a woman with a pounds 150,000 portfolio who was allocated shares judged too risky. The other case involved confusion over the number of warrants attached to a shareholding.

The Office of the Investment Ombudsman, 6 Frederick's Place, London EC2R 8BT. 071-796 3065.