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Mis Sold Stocks and Shares ISAs

If you think you've been mis sold a stocks and shares ISA, you may be able to make a compensation claim.

Individual Savings Accounts (ISAs) were introduced in 1999 and act as a tax-free wrapper for savings. They are generally offered by banks or building societies but investment firms can also offer their own products. However, there a certain situations where people have been mis sold stocks and shares ISAs. If you are one of these people, you may be able to claim compensation.

There are four main types of ISA. These are:

  • Cash ISAs
  • Stocks and Shares ISAs
  • Innovative Finance ISA
  • Lifetime ISA

The most common of the four types are cash ISAs and stocks and shares ISAs. You can use ISAs to save cash or make investments without having to pay income tax or capital gains tax. You can place up to £20,000 into an ISA in the current tax year.

A stocks and shares Isa is a tax-efficient investment account that lets you put money into range of different investments, whereas a cash ISA is a tax-free savings account. 

There are certain situations where a stocks and shares ISA may be suitable for your needs. These include situations where you are:

  • Happy to put your money into investments funds for long term savings with tax free growth
  • Not looking for immediate access to your money and are prepared to keep your money invested for a number of years
  • Comfortable with the fact that the value of your investments can go both up and down and that you might get back less than you invested.
Mis sold stocks and shares ISAs

Mis-Sold Stocks and Shares ISAs

When an advisor sold you a stocks and shares ISA, they should have discussed certain things with you. The main aspect of what the advisor should have discussed with you is how a stocks and shares ISA differs from a cash ISA. They should have specifically discussed the associated risk of a stocks and shares ISA compared to a cash ISA. This is because customers may have been led to believe they are the same product when applying for the ISA.

Whilst both offer tax advantages, they are very different products which carry different levels of risk. A cash ISA is simply a tax-free savings account, whereas a Stocks and Shares ISA is a tax-efficient investment account which allows you to put money into a range of different investments, including shares, bonds, and investment funds.

Other things that your advisor should have discussed with you include: your financial situation, the risks associated with the investment, your attitude to risk and how a significant loss would affect you, your future plans for the investment, your existing investments, and the investment’s complexity and potential risk.

If they did not discuss these things with you, then you may have been mis-sold a stocks and shares ISA, and you may be able to make a claim.

What to do if you think you have been mis sold Stocks and Shares ISAs

If you think you have been mis-sold a stocks and shares ISA, there is some information that would be useful if you want to make a claim. Any information that you may be able to provide when you make the claim can be helpful. Examples of the information that can help include:

  • any paperwork from the investment
  • when you were first contacted to discuss the investment opportunity
  • about moving the investment
  • what the advisor recommended
  • who you spoke to
  • how much you invested or moved.

If you do not have all of the information to hand, it is not too much of a problem. Any information you can give can be helpful.

How we can help

Here at The Compensation Experts, we can help with all manner of financial mis-selling claims. This includes stocks and shares ISAs. If you think you may have been mis-sold a stocks and shares ISA, contact us by filling in our contact form. Or call us on to speak to one of our friendly knowledgeable agents.

    Speak to our expert financial claims team now, find out how much your claim could be worth...







    A stocks and shares ISA explained

    Individual Savings Accounts (ISAs) have been an incredibly popular investment choice ever since they were introduced in 1999 to replace the old PPI schemes. They act as a simple and tax-free way to invest your savings by avoiding the penalties that come with income and capital gains tax, allowing you to invest up to £20,000 in an ISA each tax year.

    ISAs are generally offered by banks or building societies but investment firms can also offer their own products. Unfortunately, their popularity has led to an increasing trend of individuals winding up with mis-sold ISA investments because their financial advisor did not fully explain the difference between stocks and shares ISAs and the variety of other ISAs available.

    When investing in an ISA, there are four main types that you need to be aware of:

    • Cash ISAs
    • Stocks and shares ISAs
    • Innovative finance ISAs
    • Lifetime ISAs

    Out of these four, the most common types in use are cash ISAs and stocks and shares ISAs. A cash ISA is a simple, tax-free savings account that carries minimal risk and allows you to withdraw your money as and when you need it. A stocks and shares ISA on the other hand, allows you to take your savings and invest them in a wide range of shares, funds, investment trusts and bonds. Ideally, these will increase in value, thus increasing the value of your shares.

    Stocks and shares ISAs can be extremely tax-efficient investments, but as with any investment, it carries a level of financial risk. Therefore, a stocks and shares ISA should not be invested in without an understanding of how investment works.

    There are certain situations where a stocks and shares ISA may be suitable for your needs. These include:

    • A willingness to invest your money in shares, funds, investment trusts, or bonds over a long period of time, usually 5 years minimum
    • Not requiring immediate access to the invested money
    • Being comfortable with making long term investments and the risks that come with it.

    If you’re not comfortable with any of the above and your financial advisor encouraged you to invest in a stocks and shares ISA, then you may have been mis sold shares and could therefore be able to make a compensation claim.

    How to tell if you’ve been mis-sold a stocks and shares ISA

    When an advisor sold you a stocks and shares ISA, they should have discussed a certain number of things with you in order to help you understand the risks involved, and ultimately decide whether a stocks and shares ISA is the correct investment for you. This information should have included:

    • How a stocks and shares ISA differs from a cash ISA
    • The risks and complexities associated with a stocks and shares ISA
    • What your current financial situation is
    • Your attitude towards risk and investment, particularly how a significant loss of finance may affect you
    • Your future plans for the investment
    • Any other existing investments you may have

    Your financial advisor should also never encourage the following:

    • Using your pension to fund a stocks and shares ISA
    • Borrowing money to fund a stocks and shares ISA
    • Pressuring you in any way to agree to a stocks and shares ISA

    If your financial advisor encouraged one or all of these things, then that is an immediate sign you may have been mis sold shares. Alternatively, If your financial advisor did not discuss one or all of the above requirements with you, then you may have a mis sold ISA, making you eligible for a mis sold ISA investments claim.

    What to do if you think you have been mis sold a stocks and shares ISA

    If you think you have a mis sold ISA, there is a variety of information and identification that will be necessary if you want to make a mis sold ISA investments claim. This should include any information you can provide from when you invested in the mis sold ISA, examples of which can include:

    • Any or all paperwork from the associated investment and savings
    • Evidence of when you were first contacted to discuss the investment opportunity
    • Records of moving investments or savings
    • Evidence of what the advisor recommended
    • A record of those you spoke to while making the investment
    • A record of how much you invested or moved

    If you don’t have all of this information to hand, that’s not a problem. Having at least some evidence and records of the process is enough to begin the claims process.

    How we can help?

    Here at The Compensation Experts, we can help you with all manner of financial mis-selling claims, which includes any form of mis-sold investment bonds. If you think you may have been mis-sold investment bonds, you can contact us by filling in our contact form, or call us on  01618841451 to speak directly with one of our friendly, expert agents.

      Start by speaking to our expert team now and find out how much your claim could be worth...

      Am I eligible?

      If you’ve suffered from financial loss as a result of a mis sold ISA, you may be eligible for compensation for loss of finances. You will typically have three years maximum to make a claim, and the earlier you open your case, the more likely you are to win.

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      How much could I claim?

      Our dedicated team of experts will give you an indication of how much you could potentially claim for.
      The amount of financial compensation you can claim depends on the extent of your lost savings. There’s no cap to what you can claim from a negligent firm, and it will likely depend on the size of your initial investment bond. However, there is a financial compensation limit when going through the Financial Services Compensation Scheme (FCS).

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      How does the process work?

      When claiming financial compensation, it’s important that you know what the process involves. That’s why we make each case as transparent & clear as possible.
      Your solicitor will gather all the evidence related to your claim and notify the negligent party that you wish to begin proceedings. Negotiating on your behalf, your lawyer will keep you up to date every step of the way.

      Find out more