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Bad Financial Advice - Seeking Compensation
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Sounds to me that she knew she was tieing the money up for the 5 years investment - and she surrendered early.
I understand that people's family have their best interests at heart, but they sometimes make presumptions about the advisers intentions and the family member, when they were not there.
brucedavid - have a word with your gf to ask what she asked for0 -
Looks like the trolls are out today.You talk utterly daft nonsense.
And what bit is nonsense?Reading the nonsense you have written which you think you can disguise with irrelevent technical gibberish
Yes, never let the facts get in the way with a bit of IFA bashing.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.0 -
brucedavid21, one more question: exactly what was the product that she purchased?
medicman, bluejake, brucedavid21 was asking about compensation, which depends on whether the product was suitable for the needs expressed by the client at the time of the advice. If the product did not meet those needs, the possible resolution is the adviser putting the client in the position they would have been in had they received the best advice for the needs they expressed.
The commission has no bearing on whether it was the correct product for the person seeking advice. It also has no bearing on the compensation payable.0 -
You talk utterly daft nonsense. And then you have the chutzpah to say to someone else:
Reading the nonsense you have written which you think you can disguise with irrelevent technical gibberish, I was going to joke, 'I bet he is an independant financial advisor' and then I noticed your signature which states: 'I am an Independent Financial Adviser.':rotfl:
What on earth has happened to MSE Martin's rules for this site???
Please be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.
I could have sworn it doesn't add on;
Unless of course they happen to be IFAs :rolleyes:0 -
Yes, there are many posters on this site (and this particular forum has more than its fair share) who don't know what they're talking about and do talk "utterly daft nonsense".
But dunstonh certainly isn't one of them.
I often wonder why he bothers.0 -
my word dunstonh you really have come out with an incredible statement there:
'It doenst matter what the adviser earned.'
Are you saying to me that when you go out to a restaurant it doesnt matter what they charge you? When you go to buy a jumper it doesnt matter what it cost? You must be a very rich man if you can afford to not have to worry about these things!!
But, these examples are not quite the same thing. The equivilent would be 'It doesnt matter what the waiter earned' or 'It doesnt matter what the shop assistant earned'..Surely?
Just for my two pennies worth...Investments are just that investments! There are NO guarantees that any investment will make money or how much. Savings are completely different, they sit in an account earning interest at a specified rate.
Just because the investment didnt yeald more is not reason for complaint. You have to remember with investments, if anyone really knew how any one investment would go, wouldnt they just spend their time investing rather than advising? Its a risky game, look at it as betting with the benefit of a bit of knowledge.0 -
To be honest I need to sort out the paperwork to give everyone the accurate figures. The investment was with Zurich I can't remember the exact title of the product but it follows a unit trust format where she owns a number of units and the value of the units increases over this period. I did do some previous calculations and worked out that even if she kept it for the full 5 years it was still underpeforming greatly especially as it would be unlikely for the FTSE to perform like it has over the previous 3 years.
There is a good chance that my girlfriend did agree to the terms of this investment, she's easily talked into things (she's marrying me after all, lol!). I therefore get the jist that I don't have a hope of compensation from the previous posts. I'm just dissapointed that she could have made more by doing very little and sticking it in a high interest account for the 5 year period. Its just lucky the FTSE has done well or this investment would have been really terrible.
I think the best route going forward is to try to claim back the tax she paid on the interest during the last 3 years and then put it down to a bad investment. I still don't think however that Financial Advisors should be able to make this level of commision for giving someone bad advice especially as they must have known that the investment would be poor for her from the start. There are a lot of other products out there that could have been chosen that are much better.
I have to say that this episode has dented my confidence in financial advisors in general. It appears that a few searches on google would have returned better advice in this instance.0 -
Did she approach the financil adviser?0
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brucedavid21 wrote: »I think the best route going forward is to try to claim back the tax she paid on the interest during the last 3 years
What tax?
To be honest, I fear you are terrible confused, particularly as to the difference between saving and investing. Firstly equity unit trusts do not pay interest. Secondly if there was an income paid out, it is unlikely to have been taxable. Thirdly she hasn't made a loss, therefore you can't complain about anything. Fourthly it is entirely correct advice that the investment should be kept for at least 5 years. One reason for that is that initial charges (usually at least 5% is deducted at the start) take quite a big toll at first if you go via an advisor, so the returns get delayed to later years.Trying to keep it simple...0 -
brucedavid21 wrote: »To be honest I need to sort out the paperwork to give everyone the accurate figures. The investment was with Zurich I can't remember the exact title of the product but it follows a unit trust format where she owns a number of units and the value of the units increases over this period. I did do some previous calculations and worked out that even if she kept it for the full 5 years it was still underpeforming greatly especially as it would be unlikely for the FTSE to perform like it has over the previous 3 years.
You can only compare the fund, if that's what it is, to the FTSE if the underlying investments are part of that index.I'm just dissapointed that she could have made more by doing very little and sticking it in a high interest account for the 5 year period. Its just lucky the FTSE has done well or this investment would have been really terrible.I think the best route going forward is to try to claim back the tax she paid on the interest during the last 3 years and then put it down to a bad investment.I have to say that this episode has dented my confidence in financial advisors in general. It appears that a few searches on google would have returned better advice in this instance.
If you could provide us with details of the product, someone will be able to tell you whether she really has grounds for complaint. I suspect that the answer will be no, but it's worth a try...0
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