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  • FIRST POST
    • lings
    • By lings 5th Jan 18, 11:41 AM
    • 1Posts
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    lings
    Investment advice compensation
    • #1
    • 5th Jan 18, 11:41 AM
    Investment advice compensation 5th Jan 18 at 11:41 AM
    Hi. Hoping for a bit of advice re. a letter I have received this morning from Yorkshire Bank...

    They are offering me a settlement for providing me with advice on opening an ISA in 2008 that was too high risk and "did not properly take into consideration my attitude to investment risk". The amount invested was around 14,000 and the offer they make is 1,887. This is based on the investment loss when compared to a low risk benchmark and lost interest on that amount. They provide no details however of the benchmark used or the interest rate applied.

    It is obviously great to receive a letter offering me money out of the blue and my instant reaction is to sign and send back, but do you think there is any benefit in seeking more detail? What are the chances that they are offering me as little as they can get away with and in fact I should be receiving more?

    First post on here so thanks for any help.
Page 1
    • dunstonh
    • By dunstonh 5th Jan 18, 12:26 PM
    • 93,022 Posts
    • 60,407 Thanks
    dunstonh
    • #2
    • 5th Jan 18, 12:26 PM
    • #2
    • 5th Jan 18, 12:26 PM
    It is obviously great to receive a letter offering me money out of the blue and my instant reaction is to sign and send back, but do you think there is any benefit in seeking more detail?
    No harm if you dont understand how they have worked it out.

    What are the chances that they are offering me as little as they can get away with and in fact I should be receiving more?
    Virtually no chance of that as the calculation is defined. It would need an input error to be wrong.

    They provide no details however of the benchmark used or the interest rate applied.
    They were a tied offering. So, its probably their in-house fund that was appropriate for your risk level. Interest will be at the statutory rate as it was an error.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Alexland
    • By Alexland 5th Jan 18, 7:17 PM
    • 2,574 Posts
    • 1,956 Thanks
    Alexland
    • #3
    • 5th Jan 18, 7:17 PM
    • #3
    • 5th Jan 18, 7:17 PM
    It's not clear what losses you suffered as a result of this advice but if you feel the amount offered does fairly compensate you then take it.
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