bad investment advice

hi 3 years ago an ifa recommended me to invest part of my pension into an unlisted company in uk working in telecommunications in east africa, over the last 2 years he also advised me when i had more money to invest that this company was still the best investment choice out there for me, after meeting the ceo of the company and one of his sales team i was told how superbly it was doing and there was very low risks, no competition, order books full and a target price for the future shares would make us all very wealthy, so being told it was a 2year time frame naively decided to follow the ifa,s advice and invest more. now there seems a very good chance the company could run out of money, no risks were put forward to me at the time would i have a claim for bad investment advice or is this just a hard lesson to take on the chin.
it now transpires that the ifa has been working as fund raiser for this company, and that there was previous issues which i and other shareholders were never made aware about and how high risk this investment was.
to make matters worse my mum also invested money on his recommendation for her retirement which was earlier this year, again the time frame was wrong and so was the risk category!
grateful for any advice

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  • dunstonhdunstonh Forumite
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    hi 3 years ago an ifa recommended me to invest part of my pension into an unlisted company in uk working in telecommunications in east africa

    IFAs are not allowed to recommend shares. Are you sure it was an IFA and not a stokebroker?
    would i have a claim for bad investment advice or is this just a hard lesson to take on the chin.

    Depends if its really an IFA. If it is and they made this recommendation on a professional basis then you have a very strong case if you complain. If it was man down the pub, off the record punt suggestion with no record of a professional recommendation then no.

    I suggest you find out if the person is really an IFA. You can check the FSA register here: http://www.fsa.gov.uk/register/indivSearchForm.do

    If he is listed then you should make a formal complaint. You may also wish to write to the FSA directly if you consider a fraud has taken place. The FSA do not handle consumer complaints but they will take an interest if fraudulent activity looks to have occurred.
    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.
  • yes he was at the time a registered ifa who instigated my pension sipp and recommended to me the investment in the said company
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