HSBC investment advice

runciblespoonfed

Hi Folks, has anyone else had a letter from HSBC admitting that they have given inappropriate investment advice but concluding that by their calcualtions I, the customer has not lost money and there is no mention of compensation? I have and I have to say I am more than a little perplexed by it:beer:.

dunstonh

Hi Folks, has anyone else had a letter from HSBC admitting that they have given inappropriate investment advice but concluding that by their calcualtions I, the customer has not lost money and there is no mention of compensation?

A very common outcome with investment cases classed as unsuitable.

and there is no mention of compensation?

You are getting compensation. You get to keep the higher value of investment you were sold.

Most investment cases that are classed as unsuitable are because the risk taken was higher than the person checking the case thinks it should have been. In general, the higher up the risk scale you go, the better the returns are over the long term. So, you can be mis-sold but end up with a better outcome than had you been sold correctly.

So, in your case, they have decided you should have been on a lower risk product/investment which would have given you lower returns but as the product you have has given better returns then there is no redress to pay you. Plus, you get to keep the surplus rather than have to repay the extra you gained.

If you really want an ethical solution that fits what you should have had you can offer to pay them back the extra amount.

runciblespoonfed

Thanks for the response and I can see the sense of what you are saying, except that I believe I have recently lost any profit that i had made and have now got less than my original investment.

dunstonh

runciblespoonfed wrote: »

Thanks for the response and I can see the sense of what you are saying, except that I believe I have recently lost any profit that i had made and have now got less than my original investment.

If you decide to remain invested in the same thing beyond the point you raise a complaint then you take responsibility for that point onwards.

eskbanker

runciblespoonfed wrote: »

by their calcualtions I, the customer has not lost money

runciblespoonfed wrote: »

I believe I have recently lost any profit that i had made and have now got less than my original investment.

I'm not sure I can square those two statements as they seem contradictory - are you able to post any actual facts about what you invested in, when and any risk assessment that was done at the time, plus gains/losses according to your view and theirs?

runciblespoonfed

Thanks Eskbanker, your response is appreciated but I dont want to give facts on line, armed with your advice I will go and speak to my bank.

dunstonh

The redress is calculated on a date that will be after the complaint was raised (or case is reviewed). It is typically a date some time in the weeks previous to the redress letter. Although it sometimes can be a month or two. Effectively, comparing the value of the investment on that date versus the alternative to that same date.

but I dont want to give facts on line,

Naming the fund you are in is not going to give anything away. There will be tens of thousands of people invested in that fund and there is no way to identify you from the fund name. It will help us to look at recent fund performance to see if there is any reason for a recent significant drop.