The Financial Conduct Authority has imposed restrictions on wealth management firm London Stone Securities after serious concerns that it was not delivering “good client outcomes”.
London Stone Securities is no longer allowed to undertake any regulated activity, charge further fees to existing clients, or take on new ones without City watchdog, the Financial Conduct Authority’s express permission. This comes after significant concerns that the firm was charging clients excessive fees that “do not appear to be justified or clearly relate to benefits for the firm’s clients or provide fair value.”
The Financial Conduct Authority (FCA) regulates the conduct of approximately 42,000 financial businesses in the UK. The FCA found inconsistencies in the information London Stone Securities provided to its clients. London Stone Securities told the FCA that 5% was the maximum charge applied to any individual client of their portfolio value, when in fact, the FCA found fees were much higher, and some clients had paid fees over 65% of their portfolio value. The excessive fees mainly impacted low-value investment portfolios.
Concerns were initially raised when charges were not communicated or agreed upon with clients in advance, and London Stone Securities failed to fully disclose its terms of service.
The FCA reported that some of the firm’s client base were classed as ‘vulnerable’, and it was found that the firm was targeting the elderly and disabled through financial promotions. The restrictions were imposed in April 2024, and the FCA has recently confirmed that it is keeping them in place due to their seriousness and potential client harm.
During the FCA’s enquiry, the firm also transferred £1.3 million from its bank. London Stone Securities has since been required to withdraw all financial promotions and keep all assets in the business.
The firm has the right to challenge the FCA’s decision by taking the matter to Tribunal.
What should I do if I am a customer of London Stone Securities?
+ −If London Stone Securities didn’t communicate fully with you about its charges, or you were charged ongoing advice fees you did not receive, TLW Solicitors can help explore your options and advise on next steps.
We can investigate whether you are entitled to make a refund claim directly against your adviser or complain to the Financial Ombudsman Service. The Financial Ombudsman Service (FOS) is a government backed service to settle complaints between FCA regulated financial businesses and their customers. FOS also has the power to award compensation following its investigations.
Ongoing Advice Fee Claims
+ −Well-known firms are making the headlines due to their complex and excessive fee structures.
If you have invested through a financial adviser and paid an ongoing advice fee for a service that was not provided, you could be eligible to claim compensation not only in relation to the fees for advice that wasn’t given, but also for lost investment growth and interest.
TLW Solicitors work on a ‘no win – no fee’ basis, and our specialist pensions and investments mis-selling lawyers can help you claim compensation.
We have extensive experience of taking cases to FOS and securing compensation for clients, even if they have previously been knocked back.
We ensure that the correct claims information is submitted, your case progresses quickly, you are kept fully up to date in jargon free plain language and ultimately, you receive the compensation you are rightfully owed.
TLW Solicitors’ view
+ −Sarah Spruce, Legal Director and Head of the professional negligence and financial mis-selling team at TLW Solicitors, said:
“We are increasingly seeing regulated firms hitting the headlines for their unsatisfactory investment fee structures and ongoing advice fees. Financial advisers should make clients feel confident that they have made the right decision for their financial future, and you should, at the very least, receive the service you have paid for.
“Our team of professional negligence specialists are here to help. If you or a loved one are concerned about investments held with London Stone Securities, please do not hesitate to get in touch with a member of my experienced team who will have a confidential, no obligation discussion about your case, explore your options and advise whether you may be eligible to make a ‘no-win, no-fee’ refund claim.”
TLW Solicitors can help in Ongoing Advice Fees Claims
+ −If you or a loved one are a current or former client of London Stone Securities and believe that you have been charged excessive fees or paid advice fees for a service you did not receive, you may be entitled to compensation.
Contact our team at TLW Solicitors for a no-obligation conversation about your possible claim. Call us on 0800 169 5925, email info@tlwsolicitors.co.uk, or complete one of the forms below.
Getting advice as soon as possible is essential, as strict time limits can apply.
Minimum case values apply.
Meet the Team
Meet Sarah, Legal Director at TLW Solicitors.
Sarah and her colleagues are on hand to help with your claim.
