The ombudsman held Clydesdale had unsuitably advised the client and ordered the bank compensate her.
The ombudsman said: "Clydesdale should pay compensation on the basis that the client should only have invested £6,000 in the Conservative Portfolio and nothing in the equity fund, by comparing what she received on half of her investment in the Conservative Portfolio plus the £5,000 she invested in the equity fund with what return she might have got keeping this money free from risk.
"To do this it should the returns as shown by the Bank of England’s bonds of 12 to 17 months’ maturity. It should also factor in a fair percentage of any withdrawals.
"If such a comparison shows a loss or losses it should pay these and add 8 per cent simple interest to this figure or figures from the date Mrs R surrendered the products to the date of settlement of this complaint."
rachel.addison@ft.com
