Heres one for all you IFAs out there to comment on: Couple lose life savings

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  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    Yikes. You'd have to be a special kind of reckless (I was initially going to type something less kind) to pour that kind of money into ONE investment fund.

    Isn't it standard for an IFA to create a portfolio for their clients, not just point them in the direction of the biggest bang-per-buck going? Very odd.
    : )
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    BananaRepublic wrote: »
    Look at Blair, how many of us were taken in by his smooth charms? And look at TV adverts, many people choose to eat one brand of processed Italian style food on the basis of claims by puppets. :rotfl:

    Where's-a your weapons of mass destruction?

    Quite a catchy slogan, I think.
    : )
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    edited 26 September 2016 at 2:47PM
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    Isn't it standard for an IFA to create a portfolio for their clients, not just point them in the direction of the biggest bang-per-buck going? Very odd.

    It is but it appears that this IFA wasnt just an IFA but was using unregulated investments outside the scope of permissions for his remit.

    This guy seems to have played on the fact he was an IFA to transact in areas an IFA would not normally go near. Regulars here will now how often myself and the other advisers on this board warn people to stay away from unregulated stuff. It is where most of the scams are and where most of the issues regarding SIPPs are. For the vast majority of the population, there is no need to go near unregulated investments. That said, we do frequently see people posting on this board how get caught with greed and will invest in unregulated investments and the inevitable usually happens. It goes wrong. Thankfully, with advisers, these cases are rare. This is why they make headlines when they happen. However, I come across plenty of non-adviser unregulated investment scams where people come to us after the event to help them. By which time it is usually too late. Got another Cape Verde property case last week. The regulator is poor at dealing with scams and dodgy unregulated investment promotion.
    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.
  • Keep_pedalling
    Keep_pedalling Posts: 16,623 Forumite
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    dunstonh wrote: »
    It is but it appears that this IFA wasnt just an IFA but was using unregulated investments outside the scope of permissions for his remit.

    This guy seems to have played on the fact he was an IFA to transact in areas an IFA would not normally go near. Regulars here will now how often myself and the other advisers on this board warn people to stay away from unregulated stuff. It is where most of the scams are and where most of the issues regarding SIPPs are. For the vast majority of the population, there is no need to go near unregulated investments. That said, we do frequently see people posting on this board how get caught with greed and will invest in unregulated investments and the inevitable usually happens. It goes wrong. Thankfully, with advisers, these cases are rare. This is why they make headlines when they happen. However, I come across plenty of non-adviser unregulated investment scams where people come to us after the event to help them. By which time it is usually too late. Got another Cape Verde property case last week. The regulator is poor at dealing with scams and dodgy unregulated investment promotion.

    If an IFA does this sort of thing are there no sanctions that can be taken against him? Also why would the other partners in this firm not kick out the guy who has put them in this position?
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    If an IFA does this sort of thing are there no sanctions that can be taken against him?

    Yes there are. There is a usual lag on these things though.
    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.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Just altered your faulty subject line.

    "Heres one for all you IFAs out there to comment on: Greedy Couple lose life savings"
  • EdGasket
    EdGasket Posts: 3,503 Forumite
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    AnotherJoe wrote: »
    Just altered your faulty subject line.

    "Heres one for all you IFAs out there to comment on: Greedy Couple lose life savings"

    Eh? I don't think so. They may have been a little silly but asked the IFA for suitable advice, low-risk investments and trusted him totally. How does that equate to being greedy?
  • Pincher
    Pincher Posts: 6,552 Forumite
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    DC Comics should start a new series:

    Financial Justice League.

    An accountant buys a house built on a nuclear waste dump, unbeknownst to him. The NHBC ten year warranty is worthless, the building insurance is withdrawn, the mortgage is called in, he loses his home. A sink hole appears and sucks him into a nuclear waste dump, which gives him super powers.

    He comes together with other super heroes, and combats scams, pyramid schemes, etc.
  • brianh
    brianh Posts: 64 Forumite
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    Certainly seems a valid story for the forum.

    Like others can't understand how the guy doesn't get struck off and that is more of an indictment of IFAs then the actual headline story as we can also understand that there will be a range of abilities and ethics in all professions.

    Some of the posters are rather hard on the couple, they are not the villains here.
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    Certainly seems a valid story for the forum.

    Its not the story that is the issue. It is the intention of the poster that made it in conjunction with a number of other posts made.
    Like others can't understand how the guy doesn't get struck off and that is more of an indictment of IFAs then the actual headline story as we can also understand that there will be a range of abilities and ethics in all professions.

    They will be. And will quite possibly take the other partners in the firm down with them unless they can arrange financing. The FCA is slow on these things but the 6 monthly RMAR submissions record complaints data and financial standing of the firms. This liability will be on the books of the firm now and they will need assets to offset it otherwise they will be in default. That will trigger FCA action if there is not already action in place (which there probably is if the headlines are correct).
    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.
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