Clerical Medical Personal Investor Plan

dunstonh

sj1147 wrote: »

Hi I have just check the notes, and in the quote it states i might get back more or less than the figures suggested, so is this the get out clause they have, and if so i presume a complaint would not be worth it

The investment side isnt the issue. Its the fact you have been placed in life funds when you had access to tax free funds that is the issue. You are looking at approx 20% in tax on the funds you are in which you didnt need to pay. Also, ISAs are open ended and dont mature. You are being forced out of the market on a maturity date. Ok, you could reinvest but then you are looking at the potential of new charges. Also, the charges on the CM plan are almost certainly higher than an ISA would have been.

sj1147

Ok with you now, So do i contact Clerical Medical. or someone responsible for the IFA

sj1147

Its alarming really when you consider that you put trust in these people, i will be looking for a similar monthly investment soon, an this has made me very cautious

jamesd

You contact the IFA who made the sale to you and inform them that you believe it to be a mis-sale because you were not advised to use the more tax-efficient stocks and shares ISA method. Ask them to make an offer of redress and explain the basis for their redress calculation.

Any payment to you should be to put you into the position you would have been in if you'd instead been advised to use the more tax-efficient stocks and shares ISA route. Don't expect more than 20% of an estimate of the investment value at maturity.

For the amounts you're talking about the initial advice is likely to be very easy: invest in something within a stocks and shares and/or cash ISA. What the something should be is the harder question.

dunstonh

sj1147 wrote: »

Its alarming really when you consider that you put trust in these people, i will be looking for a similar monthly investment soon, an this has made me very cautious

Remember that its another IFA that has pointed this out and the vast majority of IFAs around now are fine. (IFAs only account for 2% of complaints at the FOS depsite being the biggest distribution channel). You can often tell a quality IFA from one that isnt from the information they provide you. If its a quick in and out and sign here and you havent had a particulary long relationship then be on guard straight away. If you get an explanation as to why this and not that and shown examples of the pros and cons on things then that indicates research and time spent. The subject may bore you but better to be bored for an hour or so than find out 9 years later it was the wrong thing.

Also the fact you bought it from an IFA gives you consumer protection. Had you bought one of these from a mail shot (and there were and still are plenty that retail these on direct offer) then yo would have hardly any consumer protection.

In the complaint, you also need to point out that you feel an ISA would have been better not only as it was tax free unlike this product but also you wouldnt have had to pay for the life assurance element which you didnt need.

sj1147

Many thanks for all your advice