What constitutes mis-selling of stock market investments to someone old and naive?

[Deleted User]

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

Mothman

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

I doubt this would be grounds for a complaint unless the investments could be shown to be inappropriate.

colsten

ZingPowZing said:

colsten said:

What is the objective of your claim, what are you hoping to achieve? Whose interest are you having in mind?

Odd questions for a thread on a board committed to "Cutting your costs. Fighting your corner."

That would refer to the consumer, colsten, not the IFA; something those trying to ingratiate themselves with advisers - "where thrift may follow fawning" - would do well to remember once in a while.

It's not an odd question at all. Like others on this thread, I am trying to get some facts to establish whether the OP has a case or not or may be. You may be one of the ones who thinks the consumer is always right. I know this isn't the case, and if you are honest, you do too.

[Deleted User]

Mothman said:

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

I doubt this would be grounds for a complaint unless the investments could be shown to be inappropriate.

Well yes, agreed; especially as the full details of the interactions between adviser and client will not come to light via a SAR.

Still a salutary thread regarding potential long-term debilitating effects of adviser fees. 

OP:   "The investment did okish - about 2.2% compounded, giving her 78K in growth and income over the 14 years. The total fees she paid over the period were 53K, of which the advisor received 37K."

That would be terrible value even if the financial adviser had a care about his client, other than a source of income, but there is no evidence.

NeilCr

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

Possibly - as there has been no comment at all about ongoing advice

As someone who was  in slightly the same position - my mum died in 2000 and I inherited a large amount I found the IFA invaluable - he recommended investment bonds and they worked out fine for me. He kept in touch over the years - and we discussed options. However, I was much younger than the OP’s relative

What I would say is that dunstonh has produced reasoned and sensible answers which - as far as I can see - have not been refuted or challenged

On the other hand you’ve resorted to digs and have proved to be incorrect in one assertion - and, possibly, two

I’ve always been open minded about IFAs. They’ve worked for me over the years but I fully accept that they are not for everyone and there are “bad apples” - just like there are those unqualified on here who give poor advice

But dunstonh has always struck me as being fair and reasonable and trying to discredit him does a disservice to those who 
come here looking for help

[Deleted User]

NeilCr said:

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

Possibly - as there has been no comment at all about ongoing advice


Fair point about commissions etc. That's why I'm here, to get some perspective. She paid an initial fee and then annual fees. Totalling 53K over the period. I've been told there are also fees to close the account.

We all love dunstonh but I even the most saintly advisers are largely constrained by legal advice and imho the whole "Good IFA/Bad FA" agenda is overplayed.

What "digs" are you referring to, Neil? I'll answer them.

NeilCr

ZingPowZing said:

NeilCr said:

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

Possibly - as there has been no comment at all about ongoing advice


Fair point about commissions etc. That's why I'm here, to get some perspective. She paid an initial fee and then annual fees. Totalling 53K over the period. I've been told there are also fees to close the account.

We all love dunstonh but I even the most saintly advisers are largely constrained by legal advice and imho the whole "Good IFA/Bad FA" agenda is overplayed.

What "digs" are you referring to, Neil? I'll answer them.

Let's see

'While leeching upon"

"the IFA appears to have done nothing"


Yet you have no evidence

And your assertion that 2.2% was a poor return without taking into account any possible withdrawals. 

[Deleted User]

NeilCr said:

ZingPowZing said:

NeilCr said:

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

Possibly - as there has been no comment at all about ongoing advice


Fair point about commissions etc. That's why I'm here, to get some perspective. She paid an initial fee and then annual fees. Totalling 53K over the period. I've been told there are also fees to close the account.

We all love dunstonh but I even the most saintly advisers are largely constrained by legal advice and imho the whole "Good IFA/Bad FA" agenda is overplayed.

What "digs" are you referring to, Neil? I'll answer them.

Let's see

'While leeching upon"

Exactly so. The OP states the 2007 investments went unchanged for twelve years.

"the IFA appears to have done nothing"

Yet you have no evidence

Given the above, I'd say the onus should be on the side charging a fee for the service. 

And your assertion that 2.2% was a poor return without taking into account any possible withdrawals. 

No, that is not what the OP said; the OP said that actual withdrawals WERE taken into account.

"Aside from that, Mrs. Lincoln, how did you enjoy the show"?

NeilCr

ZingPowZing said:

NeilCr said:

ZingPowZing said:

NeilCr said:

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

Possibly - as there has been no comment at all about ongoing advice


Fair point about commissions etc. That's why I'm here, to get some perspective. She paid an initial fee and then annual fees. Totalling 53K over the period. I've been told there are also fees to close the account.

We all love dunstonh but I even the most saintly advisers are largely constrained by legal advice and imho the whole "Good IFA/Bad FA" agenda is overplayed.

What "digs" are you referring to, Neil? I'll answer them.

Let's see

'While leeching upon"

Exactly so. The OP states the 2007 investments went unchanged for twelve years.

"the IFA appears to have done nothing"

Yet you have no evidence

Given the above, I'd say the onus should be on the side charging a fee for the service. 

And your assertion that 2.2% was a poor return without taking into account any possible withdrawals. 

No, that is not what the OP said; the OP said that actual withdrawals WERE taken into account.

"Aside from that, Mrs. Lincoln, how did you enjoy the show"?

And yet again you have no evidence

Not changing investments doesn't mean the IFA did nothing...

[Deleted User]

NeilCr said:

ZingPowZing said:

NeilCr said:

ZingPowZing said:

NeilCr said:

ZingPowZing said:

"If there was wrongdoing then you should absolutely complain.   However, at the moment, I am not seeing it." - says a fellow IFA.

From my understanding, her IFA has done absolutely nothing since choosing investments in 2007, while leeching a commission throughout the financial lifetime of the host.

Am I missing something? 

Possibly - as there has been no comment at all about ongoing advice


Fair point about commissions etc. That's why I'm here, to get some perspective. She paid an initial fee and then annual fees. Totalling 53K over the period. I've been told there are also fees to close the account.

We all love dunstonh but I even the most saintly advisers are largely constrained by legal advice and imho the whole "Good IFA/Bad FA" agenda is overplayed.

What "digs" are you referring to, Neil? I'll answer them.

Let's see

'While leeching upon"

Exactly so. The OP states the 2007 investments went unchanged for twelve years.

"the IFA appears to have done nothing"

Yet you have no evidence

Given the above, I'd say the onus should be on the side charging a fee for the service. 

And your assertion that 2.2% was a poor return without taking into account any possible withdrawals. 

No, that is not what the OP said; the OP said that actual withdrawals WERE taken into account.

"Aside from that, Mrs. Lincoln, how did you enjoy the show"?

And yet again you have no evidence

Not changing investments doesn't mean the IFA did nothing...

True. The golf handicap doesn't come down by itself.