Mis-selling of financial products such as investments, pensions, and insurance policies has become a major issue in recent years. Many people have been persuaded to buy unsuitable or inappropriate products that don’t match their needs, resulting in poor returns or losses. However, there are ways to identify whether you have been mis-sold an investment product and seek compensation from the financial advisor or institution responsible. This article will provide key information on identifying mis-selling of investments, the typical scenarios, and the process of complaining and claiming compensation.
common signs of mis-sold investment claims
There are some common signs that may indicate an investment product was mis-sold to you:
– The risks, features, and costs of the product were not fully explained or you didn’t understand them.
– The product didn’t match your investment objectives, risk appetite, or personal circumstances.
– You were advised to switch investments frequently without good reason.
– The advisor earned high commissions from selling you the product.
– Performance of the product has been much worse than you were led to expect.
typical scenarios of mis-sold investments
Some typical scenarios where investments are often mis-sold include:
– Pension transfers or opt-outs where safeguarded benefits were given up without understanding the full implications.
– High-risk or complex products like unregulated collective investment schemes (UCIS) sold to inexperienced investors.
– Structured products with capital at risk that were unsuitable for the investor’s risk profile.
– Switching from fixed rate savings accounts to risky investment bonds without proper advice.
how to claim compensation for mis-sold investments
If you believe you have a mis-sold investment claim, here are the key steps:
– Gather all documentation related to the sale including any correspondence, suitability assessments, and product brochures.
– Make a formal complaint to the financial advisor or institution that sold you the product.
– If not satisfied with their response, take the complaint to the Financial Ombudsman Service (FOS).
– FOS will independently review your case and can instruct the firm to compensate you for losses caused by mis-selling.
– If the case is complex, consider engaging a claims management company to handle the process for you.
time limits for mis-selling claims
Important to note there are time limits to consider in mis-sold investment claims:
– Complaints to the financial firm should be made within 3 years of the sale or when you became aware of the problem.
– Referring to the Financial Ombudsman Service must be within 6 years of the sale or event complained about.
– Making a legal challenge through the courts has a 6 year time limit from when the problem arose.
In summary, identifying mis-sold investments requires looking for signs you were misadvised plus scenarios like high-risk products or questionable pension transfers. Key steps are complaining to the firm, escalating to the Ombudsman, and if applicable engaging a claims company. But act promptly as strict time limits apply to mis-selling claims.