Investment advice warning....!!!

toolman_2

Bad investment advice!!!

Can anybody please help…? My girlfriend was given a lump sum (20,000 euro) payout due to bereavement. This money she did not want to use under the circumstances. After speaking to a friend who is a director of an investment bank she invested the money in two companies. This investment initially made a profit but after a short time the investment started to drop (understandable under the current market conditions). After a period of about 6 months the investment was worth about 17,000 euro. The advice from her friend was to leave it….. Now the investment is only worth 3,000 euro.
I am angry that she has lost this money. But not because of the market conditions but because this is the only money she has…. (No property, no saving, no pension). In my mind the advice should have been to make a safe investment as this is her only money. Is there any chance of the investment going up in value to anything like the original value?
Any advice would be very welcome…..
Thank you

robnye

was the money invested as euros? or converted into pounds?
if converted into pounds then the value would have been different.

did she use a registered IFA?

dunstonh

did she use a registered IFA?

Doesnt sound like it. The "friend" told her to invest in two companies (suggesting shares - which is not within the remit of IFAs). So, it sounds like she didnt get advice. Sounds more like a "hot tip". The type you should usually avoid.

But not because of the market conditions but because this is the only money she has

"Market conditions" has only dropped the market by around 16%. Thats not a lot in the scheme of things (tech stocks and other issues at the start of the millennium caused the "markets" to drop by around 45%. She has dropped far far far in excess of that.

Is there any chance of the investment going up in value to anything like the original value?

What are the investments?

kingmonkey

How does she feel about it?

toolman_2

I am not aware what the investments are, or which companies the investment were made......?
I am starting to feel she has been 'Ripped Off'.....??

dunstonh

toolman wrote: »

I am not aware what the investments are, or which companies the investment were made......?
I am starting to feel she has been 'Ripped Off'.....??

With respect, if you dont know what the investments are, who they are with or what type they are then really you are not in a position to know if she has been ripped off or not.

We need the facts to make a judgement. What you have typed so far suggests no advice was given. At least by no UK authorised individual. So there cannot be bad advice and she cannot be ripped off because of bad advice as there was none. She has effectively acted on a suggestion from someone down the pub (or a website, such as this )

[Deleted User]

kingmonkey wrote: »

How does she feel about it?

Hmmm now let me think!

toolman_2

dunstonh wrote: »

With respect, if you dont know what the investments are, who they are with or what type they are then really you are not in a position to know if she has been ripped off or not.

We need the facts to make a judgement. What you have typed so far suggests no advice was given. At least by no UK authorised individual. So there cannot be bad advice and she cannot be ripped off because of bad advice as there was none. She has effectively acted on a suggestion from someone down the pub (or a website, such as this )

The person who gave her advice is a director of an "investment Bank" and a long standing family friend, not somebody down the pub....!!!!!
But he did not do the investment for her.
I can not see how advising somebody who has 'No Savings, No Property and No pension' to make a risky investment? Tha advise should have been as this is your only saving etc then put the money in a 'Good' savings account maybe a tax free one.....!!!
Also it now transpires that 3 other members of her family have also lost money (20,000 euro) on this advice...
It does seem very strange does it not.....?
If she will tell me what the investments were i will post on here.
Thanks

Hungerdunger

toolman wrote: »

I can not see how advising somebody who has 'No Savings, No Property and No pension' to make a risky investment? Tha advise should have been as this is your only saving etc then put the money in a 'Good' savings account maybe a tax free one.....!!!

Perhaps she should have followed your advice instead, which on the face of it sounds much better than the "expert's"!

LongTermLurker

toolman wrote: »

The person who gave her advice is a director of an "investment Bank" and a long standing family friend, not somebody down the pub....!!!!!
...
Also it now transpires that 3 other members of her family have also lost money (20,000 euro) on this advice...

Bet this particular "investment banker" isn't a family friend for much longer :rolleyes:

As duns says, technically it isn't "advice", because only IFAs can give that and, as he says, they can't give advice on individual companies. Unfortunately, there's probably very little they can do unless he IS an IFA and then he's probably been very naughty indeed.

My hot tip, fwiw, is never give or take important suggestions to/from friends or family - if something goes wrong it's often the beginning of the end. Sorry it's gone that way for her.

dunstonh

I can not see how advising somebody who has 'No Savings, No Property and No pension' to make a risky investment? Tha advise should have been as this is your only saving etc then put the money in a 'Good' savings account maybe a tax free one.....!!!

The point is that it is not advice. His "recommendation" is no better than that of someone down the pub. He may be an investment banker but does that doesnt make him knowledgeable in areas that he doesnt deal in.

Yes, what she did sounds high risk and from the little you have posted, sounds totally inappropriate. Problem is that your girlfriend didnt see an adviser so didnt get advice and therefore has no consumer protection.