Delay in acting lost me money

Bob_Bobka

My adviser said he had instructed my pension holder to sell all holdings to keep in cash and that this wold be done "today." It subsequently took 5 days for this one day instruction to activate resulting in many thousands of pounds lost in pension value.

I cant seem to find out if the delay is down to the adviser or the pension company.

How and who do I complain to and is it worth seeking legal redress in court when I have an email from the adviser saying it would be done "today." ????

molerat

You start with the advisor. You instructed him therefore it is his responsibility to carry out your instructions. Has he given you a copy of his complaints procedure ?

bigadaj

It also depends on what assets were held. If this were funds for example, and you spoke to him late on Thursday afternoon, then it could easily get to Monday or Tuesday before the cash is realised.

If you give an idea of what you were invested in then people might be ab,e to comment further, but as abive the first thing is to make a complaint to your adviser.

Bob_Bobka

Not yet...I only just emailed him this afternoon and I've got to give him at least until Monday to respond.

I am concerned that the adviser will blame to the pension company and then pension company will blame the adviser and I am not someone who plays piggy in the middle.

I am just trying to do as much forward planning to learn my rights, procedures etc as quickly as possible, so that I am ready to move whatever the situation.

Bob_Bobka

I was invested in about 4 different funds but I am well versed in buying and selling shares and I KNOW that when Igive an online sell instruction it is done the same day (it also was in the morning) and that even though it may takes some days for the money to be received, the selling price doesn't change.

Besides, in emails received I was told it would be done today, so that my pension would not be exposed to market conditions. The plan was to keep the value in cash and transfer it at a later date. This means that the cash value of the pensions never left the pension company at all so the holdings were sold and the value left with the company. That cannot take 5 days. It shows that nothing was done for 5 days in my opinion.

i was further asked if I wanted my adviser to switch to cash "today..." My understanding of such a phrase is that this means he would switch it today and not in 5 days.

Bob_Bobka

Your post was helpful as it worried me about the tmings and I just checked and I replied to my adviser well before 10am the same day, within 30 minutes of his email. Hardly late in the day but your point was well taken

Malthusian

Bob_Bobka wrote: »

I am concerned that the adviser will blame to the pension company and then pension company will blame the adviser and I am not someone who plays piggy in the middle.

As others have said, start with the adviser. If he blames the pension company, complain to the pension company. If you have complained to both and ended up with a final response from the pension company blaming the adviser and a final response from the adviser blaming the pension company, complain about both of them to the Financial Ombudsman Service (assuming the error hasn't cost you more than £150,000). You can say that you have no way of knowing which of them was at fault but one of them must have been. The FOS will investigate and eventually order one or both to give redress, assuming one of them is at fault.

Bob_Bobka

Thanks...That is my plan....someone is at fault as I've also now found out that the pension company were to sell holdings and keep them in cash, which doesn;t take 5 days as the money never moved from the company.

Either way, when you're told to respond the same day so that the instructions can be acted the same day then it is safe to assume that "today" means "today."

dunstonh

Is the company that you hold the pension with one that will take instructions online?

Is the pension in pension funds or a different investment universe? (life and pension funds have an extra day or two settlement as they are priced behind unit trusts/oeics). So, if you did a sale on Friday, the sale would not happen until Monday but the settlement would be 3 days after that.

Have you asked the adviser what day they gave the company the instruction?

bigfreddiel

Bob_Bobka wrote: »

My adviser said he had instructed my pension holder to sell all holdings to keep in cash and that this wold be done "today." It subsequently took 5 days for this one day instruction to activate resulting in many thousands of pounds lost in pension value.

I cant seem to find out if the delay is down to the adviser or the pension company.

How and who do I complain to and is it worth seeking legal redress in court when I have an email from the adviser saying it would be done "today." ????

From what you say it was your advisor that decided to sell all your holdings, not you.

But more to the point WHY? There was no reason to sell. All you have done is crystallise huge losses, and now a week later the equity market has bounced back higher,. I would be looking for another advisor.

And back to your idea of getting redress, no chance. You agreed to the sell I guess, and how long it takes is just one of those things, no one will be liable. You're fighting a losing battle so move on, accept the losses and find another advisor.

Good luck fj