Let down by IFA

Newly_retired

My IFA gave me wrong information re encashment of an investment and as a result the proceeds will not be available in time for what I need it for.
As a result this will cost me quite a bit of money.
Do you think I have any redress?

dunstonh

Do you think I have any redress?

How much out is the delay?
Did the IFA cause the delay?
Was the timescale generic or specific? e.g. a withdrawal may generically be 7 days for type of product but a certain product provider may take longer due to current service standards that the IFA is not aware of.

I can give you an example where I am doing an open market option from four sources. One source transferred within 2 days. Another 5 days and the other two have yet to arrive 3 weeks on. I am not responsible for the delays for the two that are dragging on. I thought it would have completed by now but hasnt but that in no way makes me liable for anything or give the person right to redress.

Newly_retired

Thanks for your reply. This is the situation in brief.
Back in mid July, I contacted my IFA re encashment of investments, to provide additional funds for house purchase. I said I needed enough info to be ready to do this at short notice, when the time came.
He advised me not to encash until needed , to increase my returns.
He then sent me various forms. One was missing. He said a letter would do.
Fast forward to end August and exchange is imminent. I check with him again, that there is enough time to meet the proposed completion date. Following his advice I take action, sending off forms and letter, carefully calculating my timing to fit proposed completion date.
Now the company tells me that they needed a form. The 28 day notice period will not start until they get it. In fact I have already given them all the required details in a letter, but they won't accept it.
By now this will take me about a week past my completion date.
All because I was given the wrong information by my IFA, who had my timescale spelt out to him quite clearly.
This is going to cost me dearly. Do you think I have any redress?

dunstonh

Now the company tells me that they needed a form. The 28 day notice period will not start until they get it. In fact I have already given them all the required details in a letter, but they won't accept it.

Most providers will accept letters. However, recently, I had to do somethign with three providers. One accepted the letter with no issues. Another accepted the letter but wanted proof of bank account ownership and the other sent out a form asking the very things that were on the letter. wd

28 days after getting the form is really bad. Most providers take about a week to ten days. Off the top of my head, I cannot think of any provider that takes that long at the moment. To be honest, if they are taking that long, I would have been caught out too as that is very unusual. You may have more of a case against the provider.

Newly_retired

28 days notice was in the T &C.
That is why I contacted my IFA well in advance .

gadgetmind

Newly_retired wrote: »

Back in mid July, I contacted my IFA re encashment of investments, to provide additional funds for house purchase. I said I needed enough info to be ready to do this at short notice, when the time came.
He advised me not to encash until needed , to increase my returns.

What were you invested in? Anything other than cash or bonds, and advice should have been to get into cash ASAP given than you needed cash on a certain date.

As for delay, on the DIY platforms I use, I can instruct to sell one day, and take out cash the day after. I have no idea why a platform handled by an IFA should suffer delays beyond this.

Newly_retired

It is a Prufund investment plan.

jamesd

I assume that your solicitor has told you not to exchange until the funds are available. What you can do if this is a residential purchase is apologise for the problem, provide a bottle of wine and offer to meet the original completion date if the funds do become available on time, but not exchange until you are certain that they are available. Certain means in your own bank account when it comes to money from investments.

dunstonh

I wasnt aware that Prufund has a 28 day withdrawal (never used the product). However, checking the docs, it is clearly there. If the servicing adviser is the original adviser, then they should be aware of that. If it isnt, then they almost certainly wouldnt be.

I have had Pru withdrawals out of their investment bonds before with a letter. Never asked for a repeat on their own forms. It may be something that has changed or it could just be the staff member at pru is being a jobsworth. Has the IFA tried to get behind the front line staff to see if Pru will accept the letter?

Newly_retired

I haven't yet been back to the IFA.
Have had phone conversations with the Pru, and decision came , with forms, by letter.
Have now written to Customer Relations to see if they will relent.
Meanwhile, problems with exchange on house purchase. It didn't happen by the agreed date not sure why, problems higher up the ( small) chain. So now we are asking to put back the completion date.
All the other monies are now coming in, and I need to find safe homes for them for a further 4 weeks, including a Prudential investment which was doing very well, and only took a couple of days to withdraw. I could have left it growing nicely.

So back to my original question. Do you think I have any redress against my IFA? we were all aware of the 28 day condition and working with that date, which we would have met if he had sent me the right form.

atush

Well if completion has been put back, then you haven't lost anything yet. So would have no compensation to ask for?