How to complaint about Brandeux to IFA.

Hornthorn76

Please can you help I am new to this site but would appreciate any of your input.

Back in 2009 I had IFA come to my house and I explained that I would talk to him, but not that interested in investments as I can end up losing money.


At which point he went through his portfolio and pointed me in the direction of this " Brandeux Student Investment fund" he advised me that this was would suit my requirements as it was a Cautious Management low risk fund in fact he stated no risk would not make much money but would earn 5% tax free.


(I have found that to be untrue as well as I have to claim if when I get to cash in )

In the last few months it now appears I have been led down the garden path as lots of other investors in my situation as Brandeux has suspend all of their funds due to a Liquidy problem and hence not getting my monthly payment as people wishing to claim their redemption on the whole of the fund as they can not pay out indicating this is a Ponzi scheme.


My question is in short is that I feel I have grounds for mis-selling my research shows now the fund has been suspended several times before & feel that this money is now lost what is the correct procedure to go down?

dunstonh

Back in 2009 I had IFA come to my house and I explained that I would talk to him, but not that interested in investments as I can end up losing money.

Why did you invite an IFA to your house then?

My question is in short is that I feel I have grounds for mis-selling my research shows now the fund has been suspended several times before & feel that this money is now lost what is the correct procedure to go down?

You complain to the IFA giving your reasons for complaint and copies of any supporting evidence that you feel would aid your complaint. As simple as that.

ChopperST

he stated no risk would not make much money but would earn 5% tax free.


There's your problem right there...

You believed someone who told you there is no risk in investing.

Don't invest what you can't afford to lose.

jamesd

Hornthorn76 wrote: »

Back in 2009 I had IFA come to my house and I explained that I would talk to him, but not that interested in investments as I can end up losing money.

The investment didn't meet your risk tolerance. Mis-sale. IFA to pay redress to put you in the position you would have been had you not invested. If the IFA is no longer in business, the FSCS to do the same.

Hornthorn76 wrote: »

At which point he went through his portfolio and pointed me in the direction of this " Brandeux Student Investment fund" he advised me that this was would suit my requirements as it was a Cautious Management low risk fund in fact he stated no risk would not make much money but would earn 5% tax free.

It may have been in the Cautious Managed sector but that does not mean no risk. Describing it as no risk was a false claim and indicative of mis-sale if you can substantiate the claim. Though in fact the burden of proof is more going to be on the IFA to prove it was within your risk tolerance.

Hornthorn76 wrote: »

Brandeux has suspend all of their funds due to a Liquidy problem and hence not getting my monthly payment as people wishing to claim their redemption on the whole of the fund as they can not pay out

It is not at all uncommon for property based funds to suspend redemptions. It can take significant time to sell property and even more time to try to do it without imposing a loss on those who are not selling.

Hornthorn76 wrote: »

indicating this is a Ponzi scheme.

It means nothing of the sort. It simply means more demand for redemptions than the fund has cash, so the fund manager is required by its own process and likely also by the FCA to suspend the funds for a while.

Hornthorn76 wrote: »

My question is in short is that I feel I have grounds for mis-selling my research shows now the fund has been suspended several times before & feel that this money is now lost what is the correct procedure to go down?

There is nothing inherent in suspensions to indicate that the money is lost, though they also are used when that happens. You should make a complaint to the IFA about a mis-sold investment at a risk level above the level you had indicated, which was no investments because you were not willing to take any investment risk.

Perelandra

If it's any help, I had an investment in this fund (bought in 2001) which I was able to withdraw earlier in the year. It took a while to get it, though, as the fund was suspended when I first asked. I got it out eventually.

The return from this fund was reasonable, but I wouldn't buy this fund again, though. Student property funds have a very strange valuation system (something I didn't appreciate when the FA- not IFA- recommended it to me).

Good luck, I hope it works out in the end.