Mis-sold Investments

lee_mel

Hi there,
My parents were lucky enough to have some money to play with last year so made an appointment with a Lloyds bank advisor. My Father told the advisor that they wanted to invest their money with no risk, stated he was not a gambler in any way and all they would like to do is invest their lump and draw off the interest on a monthly basis. Sadly, the advisor has invested their money into a Scottish Widows share deal account with a "cautious" view of investment instead of a "secure" account. In total, including set up fees and charges they have lost £8000 on their initial £42000 capital. They are pensioners, 69 and 65, and have trusted the advisor but unfortunatley, I feel, they have been missold these policies. Is there anything we can do to try and reclaim this money on the grounds on mis-information, etc, etc. We would appreciate any help or suggestions that you may think might help.
Many thanks in advance,
lee_mel.

Lokolo

If you have proof then yes you can. Firstly write to Lloyds after the complaints section and see what they offer.

http://www.lloydstsb.com/contact_us/complaints_procedure.asp

dacouch

Post this on the Insurance forum on MSE as there will be a few more experts on in the morning to help you

dunstonh

They are pensioners, 69 and 65,

That is still considered young enough to invest. Too old is really at age 80 onwards.

and have trusted the advisor but unfortunatley, I feel, they have been missold these policies.

Lloyds operate scottish Widows sales reps. So, any product they had would have been on the Scottish Widows range and virtually all their products have risks.

Is there anything we can do to try and reclaim this money on the grounds on mis-information

You make a complaint to Scottish Widows giving the evidence you have to show that no risk was requested. Scottish Widows will provide the evidence that risk was discussed and disclosed and reject the complaint. Your parents then to go the FOS who will then decide after about 18 months if the documentation matches what SW say or what your parents say.

Losing money in itself is not grounds for complaint. Investing outside of the documented risk profile or not correctly documenting the risk profile is grounds for complaint.

SandC

Is there any such thing as a 'secure' account though? I was under the impression that the least risky products were the cautious ones.

I think you need to ascertain whether it was explained to them exactly what the actual products they invested in were, as I suspect it was otherwise they would have just kept their savings in an account.

dacouch

Investment advice from a bank is sure an oxymoran now days...

dunstonh

Is there any such thing as a 'secure' account though? I was under the impression that the least risky products were the cautious ones.

Cautious is not nil risk.

SW do run Guaranteed equity bonds from time to time but they are not on constant issue. So, if they didnt have any available at that time then they are not going to offer them.

Investment advice from a bank is sure an oxymoran now days...

Always has been. Its more like pick a product from a tiny investment range.

ZacSpeed

Lee_mel,

Did you get anywhere with this? My father is in the same situation (although in his mid 70s) and I'm about to start a complaint.

He went to his local Lloyds branch where he's been banking for 50 odd years to get some advice on the proceeds of a small downsize windfall but ended up with SW investments and a Maxi Isa. 80 might be our IFA friends view of the top age for risky investments but every piece of advise I've seen on retirement says you should be moving out of these into capital secure products as you approach retirement age let alone during.

He is not a wealthy man and only has a small private pension so I cannot see how this is not mis-selling. My biggest annoyance is that people like him are being deliberately taken advantage of because of their old fashion views of Banks and Bank Managers.

Any advice gratefully received

LagosSteve