Investments: Sharesave Scheme

bambam1966

Hello,
I was working full time with a UK company and decided to opt into their sharesave scheme. It was an option where you can sacrifice part of your monthly salary into a pot which allows you to save up and purchase shares at a predetermined historic price. Policies were either 3 or 5 year terms.
During the active term of the policy I left the company. I assumed the policy would cease and monies returned, however when I received a letter from the 3rd party broker, I received 2 options;


1. to end the policy and get my money back, or
2. to continue paying into the policy till maturity.


I chose option #2 and continued paying into the policy.


The policy has now matured and I called the 3rd party broker to find out my options. They responded that (1) I do not have the right to exercise the policy as I left the company, (2) No bonus will be paid and (3) I will be returned my original capital.


I am annoyed at this because if there was no available option for me to exercise the policy, why would I carry on paying into a scheme which provided no benefit for several years after leaving the company?


Actions I have taken so far;
1. I have complained to the 3rd party broker, so state that in my initial letter of options; option #2 should never have been offered. I have asked for compensation for my losses, but this has been to no avail.
2. The financial ombudsman cannot help, as sharesave schemes are not products they support.


I am very disappointed that I've paid into a policy which has not returned anything and the 3rd party broker was happy to take my monthly contributions for no reward.


I do not know what to do now. Shall I just withdraw my monies and walk away?
Can anyone offer any advice?


Thanks

Vortigern

You need to get hold of a copy of your ex-employer's Sharesave scheme rules - perhaps from a former colleague.

When leaving an employer on redundancy or retirement it may be possible to continue saving, and exercise the share option within 6 months of leaving.

When leaving by resignation or dismissal the share option will be forfeited, but you should get your money back.

Sharesave schemes have not paid interest or bonuses for a few years now. You can blame the government for that.