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ombudsman news

issue 5

May 2001

spread betting complaints

In the February 2001 issue of ombudsman news we included an example of a spread betting complaint we had received. Derivatives-related complaints, including those about spread betting, form a small but significant part of the caseload for the area of the investment division that deals primarily with investment management issues.

As we noted in February, derivatives are high-risk investments and not for the inexperienced. Two recent cases illustrate the problems which occur when such products are offered to investors who have little or no understanding of the nature of these investments.

Walter Merricks, chief ombudsman

ombudsman news gives general information on the position at the date of publication. It is not a definitive statement of the law, our approach or our procedure.

The illustrative case studies are based broadly on real-life cases, but are not precedents. Individual cases are decided on their own facts.