General Investments Explained
These are things like bonds, investment funds, equity ISAs, unregulated collective investment schemes (UCIS’s) or other investment backed savings products where you invest a lump sum or deposit regular savings with a view to getting a return.
Thousands of people have invested their life savings into investment products like these on the advice of banks and personal financial advisers. Many of these people have lost significant sums of money, especially if they invested prior to the 2008 financial crisis.
The FCA guidance states that consumers should receive advice which is “clear, fair and not misleading”. Advice given to consumers should always be transparent and consistent with your investment objectives and personal circumstances.
If the advice you received was not suitable, you may have a claim.
Being mis-sold an investment or savings product is not a straightforward issue. It may be years before you discover there is a problem.
Our clients are typically not wealthy people, but those who have worked hard to build up a sum of money they wish to invest for their future. Elderly people who have retired and received lump sums or bereaved individuals who have inherited a sum of money from family or friends.
What they all have in common is that they have been given unsuitable advice to risk their savings when it may not have been appropriate to do so.
If you took advice from your bank or financial adviser and feel that the advice you received did not match your objectives or personal circumstances, you may well have been mis-sold your investment.
Has Your Investment Been Mis-Sold?
Think about the point when you were advised to take out the investment. At the time of sale, did the financial adviser or sales person you were talking to:
- Ask you what your attitude to risk was?
- Ask you what the objective for your investment was? Were you asked whether your objective was growth or income and what your target value was?
- Take you through what you would do as an alternative if your investment did not deliver or perform as expected?
- Consider what your investment experience was – i.e. consider whether you were new at this or a seasoned investor who knew what they were doing?
- Take you through and discuss alternative products with you?
- Explain the advantages and disadvantages and any penalties relating to the product you were buying in full to you? Did you actually understand what you were signing up to?
- Discuss the implications of long term investment if your health was poor or you are elderly?
- When making the investment, invest a high percentage of your savings and leave you with only a small cash reserve for emergencies?
- Give you any advice about repaying any loans or mortgages before you made your investment?
- Ask you if you have an emergency fund? This is a crucial part of any investment decision that involves a fixed term investment. There are often heavy financial penalties for accessing the investment before maturity.
If any of the above points apply to you and you feel that you may have a claim for a mis-sold investment, then please contact us straight away.
Even if the firm that advised you to take out your investment is no longer in business, the Financial Services Compensation Scheme (FSCS) may cover you. This scheme was set up to provide compensation for customers of companies who cannot pay compensation.
What Can You Do To Reclaim Mis-Sold Investments?
You can either, claim on your own or you can use a specialist like CMP to help. We can’t guarantee a pay-out for you or get more money than you would if you claim on your own, or that we can handle the claim faster.
What we can guarantee is a professional, straight forward, honest service which is hassle free for you. We will use our knowledge and specific expertise to ensure your claim has the best possible chance of being successful. For our contact details, click here and get in touch with us now.
Who Pays The Compensation?
Most of the cases we represent are presented to the Financial Services Compensation Scheme (FSCS) in a bid to reclaim money lost by investors who suffered negligent advice or were unaware of the full facts before making their investment.
The FSCS is a free service, therefore you can make a claim for compensation yourself.
The FSCS protects consumers when financial services firms fail or go bust. It’s the compensation scheme for customers of UK authorised financial services firms and is often referred to as the fund of last resort for individual investors.
FSCS protects the following:
- Investment business,
- Home finance (for business from 31 October 2004),
- Insurance policies, and
- Insurance broking for business from 14 January 2005. We also protect connected travel insurance where companies such as travel firms and holiday providers sell the policy alongside a holiday or other related travel for business from 1 January 2009
The FSCS has set compensation limits dependent on when the firm you are claiming against was declared as in default:
- Up to £85,000 for firms which failed after 1st April 2019
- Up to £50,000 for firms which failed between 1st January 2010 – 31st March 2019
- Up to £48,000 for firms which failed prior to 1st January 2010
What If The Firm Is Still Trading?
If the broker or your advisor is still trading any complaint must be made directly to the firm. There are regulatory procedures and timeframes the firm must adhere to when dealing with any complaint.
If you are unhappy with the final decision your complaint can be referred to the Financial Ombudsman Service (FOS).
If you are unsure whether you have valid reasons for a complaint to the firm call a specialist today and we will quickly establish if there is basis for a claim. For contact information please click here