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Financial Ombudsman - what to expect?
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SudburyHall
Posts: 1 Newbie
I believe my parents may have been scammed, or at the very least, poorly advised by their FA. Earlier this year I found out that they were having trouble getting cash out of their investments. After a bit of digging, it seems that their adviser recommended they put their money into a syndicate - which I believe is technically an “unregulated collective investment scheme” - and that syndicate appears to have lost control of the cash with some unscrupulous party which has gone in to administration.
I realise they are not covered by anything like the FSCS. However, I have started going down the route of complaining to the Financial Ombudsman, as the product was clearly ill-suited to my parents (neither of whom are high net worth, or experienced investors). My hope is that there may be some recourse via the advisers insurance policy.
Does anyone have experience with bringing this sort of thing to the Ombudsman’s attention? Should I be looking to get a solicitor/lawyer involved? The current state of play is that we are waiting for the “final response” from the adviser (where we’ve demanded the monies returned) and when that is received, or not, we’re going to raise the complaint formally with the FO.
I realise they are not covered by anything like the FSCS. However, I have started going down the route of complaining to the Financial Ombudsman, as the product was clearly ill-suited to my parents (neither of whom are high net worth, or experienced investors). My hope is that there may be some recourse via the advisers insurance policy.
Does anyone have experience with bringing this sort of thing to the Ombudsman’s attention? Should I be looking to get a solicitor/lawyer involved? The current state of play is that we are waiting for the “final response” from the adviser (where we’ve demanded the monies returned) and when that is received, or not, we’re going to raise the complaint formally with the FO.
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Comments
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There is FSCS cover for bad advice, and based on what you describe, the advice they received was bad. The correct process to follow would be the complaints process you are currently following. The Financial Ombudsman Service would normally seek to put your parents back into the position they'd be in if they had not invested, and would award compensation to achieve that. If the adviser cannot afford to pay, then the FSCS could step in.There is no need to engage with a solicitor, the complaints process is simple and designed for ordinary people to use without help. You would only need to make the case that the investments were unsuitable and too risky for your parents. It should not be a difficult case to make.0
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OP, you mention 'FA'. Do you mean FA (ie a salesperson) or IFA? Were they authorised to give this advice?
Can you provide a bit more detail?0
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