Bad advice - investments / pension

Adrwilliams

Good afternoon,
(Not sure this is in the correct category?)
I wonder if anyone has any thoughts on my scenario?

In 1990, at the age of 18 I started work with a local council who I still work for today.

For years I'd watched my parents happily invest sums of money with a very well known investments company (not sure if I'm allowed to name them? anyway, they 

now exist under a different name, but might once have been seen as a 'jewel in the crown'......

Mum and Dad had built up far more than a financial relationship with two reps in particular, over many years. They'd become 'friends' or at least that's how it seemed.

They were trusted, beyond doubt, and my parents investments did well. 

They were keen (of course) to help me invest, too.

However, they regularly told me (they presented it as a joke) that the Council pension I'd started paying into, was NOT VERY GOOD!! 

They advised that my money would be better off with their investment products and used my parents' investments as examples, but despite me asking them

about their pension products, the advice was 'you're too young to be thinking about a pension - concentrate on these alternative investments, instead

and you can create your own pension.

Less than two years later I relented, took their advice and ended the pension payments. 

Four years later, (1996), they did a U-turn and advised me to restart the council pension because 'council pensions had much improved - do it now'. I did.

They weren't interested in discussing their pension products with me at this point, either.

The investments they sold me included Unit linked bonds, a Saverplan, a single life endowment and one PEP. (6 investments in total - some of which, I believe, 

included life insurance which I wasn't aware of and didn't need.

Bottom line is that I now have a 4 year hole in my pension fund. (maybe there are other issues, too?)

I complained to them in 2000, insisting that I'd been poorly advised to leave my pension. In short, their response was that 'there is 

no evidence to show that you were advised to leave your pension scheme, no evidence that any of our investments were unsuitable for you, and,

unfortunately, neither of the reps work for us any more, so we're unable to question them. 

I've heard recently about people making claims against companies for poor financial advice.

Does anyone have any thoughts on this? (I'm well aware of my naivety and foolishness, thanks!) 

Do you think there is any scope to pursue a claim? The investments they sold me did OK, it's the pension side of things I'm concerned about.

Any advice would be much appreciated.

Thanks,

Ad

AnotherJoe

You say you have a 4 year hole in your pension, dont you also have a lot of money built up in what is now ISAs (was PEP), and endowment and so on? The fact they arent technically classified as "pension" is irrelevant, you can spend them in the same way as pension income (and quite likely without tax, unlike pension income).

Would you be happy if they took everything away and gave you four more years of council pension? Because dont expect to have your cake and eat it, keep all teh investments endowment etc. AND get the extra pension !!

Albermarle

Most probably being advised to stop paying into your council pension was not good advice and it seems they realised they were treading on thin ice by recommending it .
Problem about complaining is that  was a long time ago and as said above you would have to prove you had actually financially lost out. Which may or may not be the case.

Marcon

Given how young you were, the 'advice' (if indeed that's what it was) may have been good, depending on what you told the reps. Few teenagers see themselves as spending the next 30 years working for the council and it's entirely possible that what they suggested could have made sense at the time.

You complained 20 years ago and appear to have accepted the reply you got. Too late now to have another bite at the same compensation cherry.

dunstonh

Four years later, (1996), they did a U-turn and advised me to restart the council pension because 'council pensions had much improved - do it now'. I did.

The pension misselling period was from 1988 to 1995.  So, the U-turn in 1996 fits with that.

They weren't interested in discussing their pension products with me at this point, either.

Once you joined the occupational pension, you couldn't have a personal pension back then.

The investments they sold me included Unit linked bonds, a Saverplan, a single life endowment and one PEP. (6 investments in total - some of which, I believe, included life insurance which I wasn't aware of and didn't need.

The life assurance wrapper had an element of life assurance to qualify it under life assurance tax rules.   The Pearl saver plan used the life assurance to add the reversionary bonuses too and was part of the return.  So, it wasnt a case of you not needing it.  it was part of the product and quite normal for the period.

I complained to them in 2000, insisting that I'd been poorly advised to leave my pension. In short, their response was that 'there is 

Pearl carried out a pension review, as did all firms and had contacted people from 1995 onwards.  It was pro-active.  They contacted you.  So, you shouldn't have needed to contact them.

I've heard recently about people making claims against companies for poor financial advice.

A strange thing to say as you already made a claim to the provider for poor financial advice.  So, how have you only heard about it recently when you already did it 20 years ago?

Does anyone have any thoughts on this? (I'm well aware of my naivety and foolishness, thanks!) 

You already know the answer to this as you have already done it and had your response.

Do you think there is any scope to pursue a claim? 

No.  You already complained and had your response.  

Adrwilliams

Thanks for your comments. 
This is not about 'having my cake and eat it' it's about whether the advice to leave my pension was correct, which clearly, it could not have been. My job, at that time, was seen, pretty much, as a 'job for life' and that was my expectation.
Whether the 'alternative investments' made money or not, is irrelevant. The impact on my pension, surely, is a separate issue. 
After my initial complaint, I assumed (naively) that the matter was closed. That was until I noticed TV and radio ads inviting people to make claims, over recent months. That's what I referred to ('strangely')
Thanks again for your assistance and opinions. 

dunstonh

After my initial complaint, I assumed (naively) that the matter was closed. 

It was closed unless you referred it to the FOS.  the rejection letter would tell you that you have the right to go to the FOS if you disagree with the outcome.   you had 6 months to refer it to the FOS.   After that, you are timebarred.

That was until I noticed TV and radio ads inviting people to make claims, over recent months. That's what I referred to ('strangely')

Every time the market falls, claims companies send out media adverts to try and hook people in.  They are also desperate to generate new complaints as the PPI issue is now over.     Whilst they go by the name "claims company" they are actually "complaints companies".   Claim = complaint.

Paul_Herring

They are also desperate to generate new complaints as the PPI issue is now over.

Current lot that I've noticed that appear to be impinging between the songs on the radio at the moment appear to be "were you mis-sold a S&S ISA by your bank?"

This is one of them: https://goodwinbarrett.co.uk/mis-sold-stocks-shares-isa/

Scrotes the lot of them.

dunstonh

I bet the CMCs were p'd off with the markets recovering quickly.   They would have preferred everyone to suffer a long drawn out loss period.

barnstar2077

Paul_Herring said:

They are also desperate to generate new complaints as the PPI issue is now over.

Current lot that I've noticed that appear to be impinging between the songs on the radio at the moment appear to be "were you mis-sold a S&S ISA by your bank?"

This is one of them: https://goodwinbarrett.co.uk/mis-sold-stocks-shares-isa/

Scrotes the lot of them.

I too have been hearing an ad on the radio recently asking if you have lost money on a stocks and shares ISA that may have been mis-sold.  They are just preying on people's greed / ignorance / inability to accept responsibility for their own actions.  Unfortunately there is always someone who wants to take advantage of these people.

steampowered

Do you have a feeling of how much 4 years of contributions into the council pension at ages 18 - 22 would have been worth?

Compared against the 4 years of contributions you made into a personal pension instead?

I am no expert on this and could be completely wrong, but we might not be talking about very much money here.