bank mismanagement?

caught_once_twice_shy

We can claim for ppi and credit card misselling but has anyone been able to get redress from their bank for wrong advice on investment. I was encouraged to put my pension pot (small amount) into a scottish widows cautious investment bond by a lloydstsb financial advisor. I required a monthly income to add to a reduced state pension income. Annuities etc were never discussed only the rate I should gain against savings accounts. The five years of the bond comes to its end this month and I have paid for my own monthly income out of the original money put in, gained nothing in fact lost money, but paid out the fees for the management of the bond. At the moment I am still losing money as I need to take the monthly income.
Any advice do I leave my remainding money where it is? Or take whats left and do ??? Surely this was mismanagement even though I was aware there was a danger I could get back less than I invested

magpiecottage

The management of the fund is likely to be considered a matter of commercial judgement, which is not a ground for complaint. Nor is investment performance.

If you feel that the product was unsuitable or was not described in a manner that was clear, fair and not misleading you can complain about that, though.

dunstonh

has anyone been able to get redress from their bank for wrong advice on investment.

Yes. any financial product can be mis-sold potentially and if your complaint is upheld, then they will pay redress.

I required a monthly income to add to a reduced state pension income. Annuities etc were never discussed only the rate I should gain against savings accounts.

LTSB sales agents are only allowed to recommend Scot Wid products on a limited product range (even limited on the full SW range available through IFAs). I believe the bank sales rep doesn't have access to annuities and therefore like any tied agent, they do not have to make you aware of them.

I have paid for my own monthly income out of the original money put in, gained nothing in fact lost money, but paid out the fees for the management of the bond. At the moment I am still losing money as I need to take the monthly income.

Investments zig zag in value. That is normal. At periods over the last 5 years you would see the investments go down and periods you would see it go up. That is quite normal.

You mentioned annuity, well if the rep did have one available you would have lost all your capital in exchange for an income. So, if a volatile capital value concerns you then surely one where you give up all the capital would be even worse?

Any advice do I leave my remainding money where it is?

We dont know your circumstances and cant say.

one assumes it is a large amount as you wouldnt do an investment bond on a small value as it is not cost effective or tax efficient. (S&S ISA and Unit Trusts being the better and more tax efficient option) - some scenarios where that could differ. So, you may want to see a local IFA (what you should have done in the first place) and ask them to look at it. Scot Wid investments are not great bar a couple of exceptions that are not available via LloydsTSB. However, they are only allowed to recommend what they have. An IFA can look at it from the whole of market perspective.

Surely this was mismanagement even though I was aware there was a danger I could get back less than I invested

No. Think of it like a savings account paying interest of say 2% net and you drawing 5% net. There is only one direction that is going to go.

investments have the potential to pay more but will have volatility which will see the values drop at times by larger amounts. How much and how it recovers will depend on the investments use.

Whilst none of the things you have mentioned are really mis-sale reasons. You may actually have some scope if you were recommended an investment bond incorrectly. How much did you invest? Is you annual income (from pensions and savings) close to £24,000? Did you take out a stocks & shares ISA at the same time or already hold one for that year?