Mis Sold Stocks and Shares ISAs
If you have been mis sold stocks and shares ISAs, you may be able to claim compensation.
Mis Sold Stocks and Shares ISAs
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
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 advisors.