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Sterling Financial-Lost 20k in a year
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tinynik
Posts: 6 Forumite
Hi everybody.
I am posting this on behalf of my parents who are looking for a bit of advice.
They have had a product with Sterling Financial for the past 4 years.... It had been going great, up until this year where it had lost over £20000, which is a third of the investment.
On signing up to this product, it had been deemed as a low to medium risk and was assured that the money would be man managed, i.e if the account was losing money, the funds would be transferred to something else that was making money.
On there yearly statement (received last week), it turns out that the funds have not been jiggled about at all, and were still in the same groups as they were last year.
My dad spoke to the financial advisor who fed him the tripe about his funds being managed, and was told he could move them to something which would only make 2% interest in a year.
Can anybody see if my parents have a case with the financial ombudsman over this?
Many thanks x
I am posting this on behalf of my parents who are looking for a bit of advice.
They have had a product with Sterling Financial for the past 4 years.... It had been going great, up until this year where it had lost over £20000, which is a third of the investment.
On signing up to this product, it had been deemed as a low to medium risk and was assured that the money would be man managed, i.e if the account was losing money, the funds would be transferred to something else that was making money.
On there yearly statement (received last week), it turns out that the funds have not been jiggled about at all, and were still in the same groups as they were last year.
My dad spoke to the financial advisor who fed him the tripe about his funds being managed, and was told he could move them to something which would only make 2% interest in a year.
Can anybody see if my parents have a case with the financial ombudsman over this?
Many thanks x
0
Comments
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It depends on what the interpretation of "low to medium" risk is.
Typical funds have lost a third in the last twelve months, so the current performance is not ot be unexpected.
That loss could easily be recovered in the next year or so - who knows?
I don't think he'll succeed in proving he has been badly advised. The key is whether the fund his money is invested in is right for the risk profile. Medium risk = average loss of a third(ish) in the current market.
There may be questions over the quality of the fund management though - but this isn't a selling complaint.0 -
On there yearly statement (received last week), it turns out that the funds have not been jiggled about at all, and were still in the same groups as they were last year.
Which they would be unless your dad signed a switch for to get them switched.Can anybody see if my parents have a case with the financial ombudsman over this?
Nothing you have suggested gives any reason for complaint. Investments can do down as well as up and in the last year they have gone down. Its par for the course. A drop of third isnt too bad and does come in line with low/medium given recent events. You cant just have the good. You have to have the good and the bad and average it out. Thats how investments work.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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