Would it be accurate to say that you were exhorted by an independent financial adviser to invest in a speculative scheme that didn’t pan out? Or was an independent financial adviser responsible for the loss of the cash you put away for your retirement? Or the receipt of a huge unforeseen tax bill? Or did an independent financial adviser imperil your investment goals?
- How was the investment product sold to you?
- What were your circumstances at the time of the sale?
- Was the investment sold without notifying you of its high-risk nature?
- Did you have the financial wherewithal to suffer the loss of the entire investment amount?
- What was your age and occupation at the time of the investment?
- Did the financial advisor use partial and/or misleading information?
- Was there a failure in the supervision of your investment?
- Was there a failure to diversify your investment portfolio?
Can I Make a High-Risk Investment Claim?
Unfortunately, some of the most popular high street banks, building societies and financial advisers have sold financial investment products that were unsuitable to their clients. Either they failed to carry out the correct assessment to understand the client’s circumstances or failed to explain the risks accurately. At that point, the expectations that were sold along with the investment disappear and, instead of a future of financial stability, the investor is left in personal turmoil and overcome with unforeseen pressures.
If you have invested with similar circumstance and your financial adviser did not properly warn you of the risks involved, you may have been mis-sold a high-risk investment and be entitled to compensation.
Facts on the Ground
The selling of investments in the United Kingdom is regulated by the Financial Services and Markets Act of 2000. All regulated and unregulated persons/firms are required to act according to a strictly prescribed set of rules governed by the Financial Conduct Authority (FCA).
An investment firm must always ensure that only regulated and suitable investments are offered to retail investors who are deemed appropriate for the investment opportunity. Unregulated investment products, although still mandated to be FCA-registered and approved for sale, may only be offered to self-certified, high-risk investors or existing investors in unregulated investment (UCIS). Whether one is sold a regulated or unregulated investment, the potential for a valid claim may be made if misconduct took place.
Individuals who are self-certified, high-risk investors also must understand the risks involved ─ including those investment products approved by the Financial Conduct Authority (FCA).
The UK Financial Ombudsman Service (FOS) continues to issue guidance to the public on how it assesses consumer complaints about the suitability of investment advice. The FOS will examine the regulatory and legal laws and standards relevant to the time the advice was given to the consumer. If approved, redress is oriented to restore the consumer back to the circumstances before the advice was given. Compensation packages could equal the amount of the investment plus 8% interest, or the equivalent of a suitable investment within that period.
In the event the investment adviser is no longer trading, if your policy was taken out after August 1988 then it is covered under the FSCS (Financial Services Compensation Scheme). This is a government body set up to deal with financial claims for providers regulated by the FCA that have ceased trading and have been declared in default.
Where we obtain a successful refund our fee will be 30% plus VAT of that award (e.g. if the award was £1,000, the fee would be £300 + VAT), but in the event that we were unable to obtain a refund on your claim, no fee would be payable. A fee may be payable if you cancel after the cooling-off period or we are successful in reclaiming any redress. you may be charged a cancellation fee for any work we have done as per our T&Cs.