The problem of financial mis-selling can take many forms. If your bank, independent financial advisor, or finance broker sold you a product that wasn’t suitable for your individual investment needs, then you may be eligible for compensation.
The widespread mis-selling of savings and investments to individuals across the country has become a national problem. If you have made a complaint to your advisory firm but have had an unsatisfactory response, then the Financial Ombudsman Service or Pensions Ombudsman may accept and investigate your complaint.
What is financial mis-selling?
The word “Mis-selling” means that you were given unsuitable advice in relation to the investment product you were offered. In other words, the risks were not explained clearly and you were not given the right information required for you to make a sound investment decision. This means you ended up with a product that wasn’t suitable for your needs.
The person who advised you to buy the investment product is legally bound to recommend something suitable for your needs. This must then be clearly explained to you. They should make sure you know the risks. If your advisor didn’t do this, then you may be eligible to claim compensation.
Why suitable investment advice is so critical
No matter what type of investment you were sold, choosing where to invest a lump sum or regular savings is one of the biggest decisions an investor makes. No matter the type of investment; whether it’s a Bond, SIPP, standard pension, Equity ISA, or any other investment-backed savings plan, your financial advisor must give you clear advice.
Investments of this nature are often chosen because of the future aspirations, hopes and plans of the investor. When it comes to making such decisions, most investors will look to speak to a trusted organisation like a bank, or recommended IFA, experts for advice. Sadly, many consumers have been mis sold investments because the advisor benefitted financially from the outcome of the advice.
Mis Sold Investment Compensation
Many investors feel that their financial advisor meant well and that the outcome of their investment was ultimately their responsibility. However, the responsibility to ensure that a financial product was fit for purpose is the sole responsibility of the financial advisor. Some of the best known banks and financial companies, such as Barclays, HSBC and St. James Place have been issued with fines for mis-leading their customers.
You may be eligible for compensation if you have been left with an investment which didn’t meet your individual requirements and potentially carried a greater risk than you may have expected. Speak to one of our advisors today to find out whether you could be eligible for mis sold investment compensation. Call us on 0800 046 7229.
Examples of financial mis-selling
Mis-sold mortgage examples
Some ways you might have been mis-sold a mortgage:
- You weren’t told about the commission that the advisor would receive.
- Your mortgage end date is after your retirement date.
- You may have been given a fixed-rate mortgage but told to remortgage to get a better deal. However you subsequently may have incurred penalties for leaving the fixed rate early.
- You weren’t told about penalties for leaving a fixed rate early when switching between lenders
Payment protection insurance (PPI) mis-selling examples
PPI is one of the most common mis sold investment products. Here are some of the most common examples.
- You were told that PPI was compulsory with your loan or financial product
- You weren’t in employment when you were sold PPI
- You weren’t advised about how commission would work on the PPI
- You weren’t told about rules relating to any pre-existing medical conditions
- You felt pressured to purchase PPI
- You weren’t told that you could buy PPI from another provider
- You weren’t taken through the terms and conditions of the PPI policy
Mis-sold investment SIPP examples
Many investors were encouraged to move their pension into a self-invested personal pension (SIPP) for promised better financial returns. Here are some examples of mis-sold investments:
- You weren’t told about the risks involved.
- You were recommended a SIPP product which didn’t suit your needs or attitude to risk that you discussed with your financial adviser.
- You weren’t informed how your money would be invested.
- You were advised to invest in Forestry Schemes such as Ethical Forestry Ltd without being told the risk
- You were offered Self-storage pods, green energy schemes or overseas real estate investments without full knowledge of the type of investment.
Get free advice on mis sold investments and financial mis-selling. Speak to one of our advisors today on 0800 046 7229.