Investment and my bank

itsme999

Hi
I was pushed to ISA investment by my new bank manager, I won't name banks. He kept pestering with calls and emails, eventually I agreed. He told me it's a medium term investment 3-5 years. 
After 1 months, it was down by 1.3%, after 3 months, my investment is down nearly 4%. I emailed the manager after one month, his response was: "XXX Invest is a long term investment as we discussed at length. It is not about making a quick return and cashing in a few weeks later. It’s not like Bitcoin. ........ I would estimate a drop of a lot more than 1.3%. Just ignore the fund and let it do its thing over the coming years."
Two things in his email were "long term" and "estimate a drop of a lot more than 1.3%" which weren't what he said before investing. In fact, I wouldn't have done it if he had told me such. 

I am not happy with this situation, what are my options? 
I am thinking of the lines of complaining to the bank and say either full refund or I move bank, can I go further to the FCA? Or I have no case?

Thanks

Thrugelmir

Did you read the product literature you were sent? 

He told me it's a medium term investment 3-5 years. 
After 1 months, it was down by 1.3%, after 3 months, my investment is down nearly 4%.  I emailed the manager after one month, his response was: "XXX Invest is a long term investment as we discussed at length.

So your complaint is the investment has temporarily lost value? Despite being told very clearly that it's not short term? 

Albermarle

 Or I have no case?
No, there will be the following statements ( or something similar ) prominent in the literature provided.
'Return of your Capital is not guaranteed'
' Investments can go down as well as up'

Personally I would not be happy about a bank pestering me to invest and would probably avoid the bank in question in future, once the investment had run its course of 5 years minimum. 

The_Fat_Controller

My ISA is down 3% this morning alone but I am not worried.

There were obviously discussions about the investment as detailed by the manager's reply and the bank cannot be responsible for market volatility.

Now that the funds are in a tax-free wrapper I would advise sitting on your hands and see where you are in 3 to 5 years time.

I don't think you have any case for a complaint.

eskbanker

itsme999 said:

I was pushed to ISA investment by my new bank manager, I won't name banks. He kept pestering with calls and emails, eventually I agreed.

While agreeing with the above posts that volatility should be expected, the conduct of the manager does sound questionable - what was the thrust of his argument, i.e. why did he recommend that you invest?  How much discussion was there about your assets (e.g. how much did you invest versus your cash deposit savings, etc), your objectives and timescales, your attitude to risk, etc?

The_Fat_Controller

Tackkers said:

The_Fat_Controller said:

My ISA is down 3% this morning alone but I am not worried.

There were obviously discussions about the investment as detailed by the manager's reply and the bank cannot be responsible for market volatility.

Now that the funds are in a tax-free wrapper I would advise sitting on your hands and see where you are in 3 to 5 years time.

I don't think you have any case for a complaint.

You haven't forgotten to mention that you're a millionaire have you? 

Not at all, as I am not an ISA millionaire with the Witan share price as it is today.

To the OP, take the long term view !

jimjames

Tackkers said:

The_Fat_Controller said:

My ISA is down 3% this morning alone but I am not worried.

There were obviously discussions about the investment as detailed by the manager's reply and the bank cannot be responsible for market volatility.

Now that the funds are in a tax-free wrapper I would advise sitting on your hands and see where you are in 3 to 5 years time.

I don't think you have any case for a complaint.

You haven't forgotten to mention that you're a millionaire have you? 

Investments can go down by 3% regardless of how much you have in them.

If the OP is worried about a 1-4% drop then it sounds like investments are really not for them but if they just left it there for 5 years and didn't check daily they're likely to be pleasantly surprised.

jimjames

itsme999 said:

I am not happy with this situation, what are my options? 
I am thinking of the lines of complaining to the bank and say either full refund or I move bank, can I go further to the FCA? Or I have no case?

If you think you were wrongly advised then you may have a case but it sounds from your first paragraph that the salesman was very clear that it was a long term investment and that it would go down as well as up which might make such a complaint less viable.

But he's right it's not like Bitcoin which could go down 30% in a day.

[Deleted User]

Tackkers said:

Frequently posters are informed relentlessly, and largely by prolific posters that, minus 5 years is too short for investing it needs to be for 7-10 years, preferably longer, and here on topic they're hammering home that 3-5 years a long term investment. Hilarious!

Hi,

I think posters are referring to the OP not being happy after 3 months.

Daliah

itsme999 said:

I am thinking of the lines of complaining to the bank and say either full refund or I move bank, can I go further to the FCA? Or I have no case?

Unless you received actual financial advice (doesn't sound as if you did) which was incorrect, I doubt you have a case for a complaint. I also don't think that your bank would be particularly fazed by a threat that you would leave unless you got a refund. It is normal that investments can drop in value at times, which is why you have to have a long term view so you can ride out inevitable market fluctuations.

If you do want to complain, you can of course do so. If the bank doesn't respond to your satisfaction within 8 weeks, you can then take your complaint to the FOS. You cannot complain to the FCA as they do not handle consumer complaints. As above, unless you received incorrect financial advice, the FOS is highly unlikely to uphold your complaint.

Sit tight, don't check your ISA more than once a month, or preferably only every 6-12 months.

Albermarle

Tackkers said:

jimjames said:

itsme999 said:

I am not happy with this situation, what are my options? 
I am thinking of the lines of complaining to the bank and say either full refund or I move bank, can I go further to the FCA? Or I have no case?

If you think you were wrongly advised then you may have a case but it sounds from your first paragraph that the salesman was very clear that it was a long term investment and that it would go down as well as up which might make such a complaint less viable.

But he's right it's not like Bitcoin which could go down 30% in a day.

Whilst I'm in agreement that the OP has a slim chance of any successful claim I am surprised from comments as to what is deemed to be a long term investment.
Frequently posters are informed relentlessly, and largely by prolific posters that, minus 5 years is too short for investing it needs to be for 7-10 years, preferably longer, and here on topic they're hammering home that 3-5 years a long term investment. Hilarious!

If you read most Fund documents , they always seem to say that the investment is meant to be held for a minimum 5 years . Probably it is an industry standard statement. The historical risk of loss at 5 years is around 10% 
So this would normally be the minimum, and you are right to point out that three years would normally be seen as too short, and probably the salesperson could get pulled up on this point .
Going to 7 or 10 years is usually recommended by the cautious posters on here , as it reduces the risk of losses further to around 5%.