The Financial Conduct Authority (FCA) – which regulates financial services and markets in the UK – states that an advisor must sell financial services in a way that is fair, clear, and not misleading. This means that if you have been advised to take out an investment product by a financial advisor in the last 30 years you may have been given poor or unsuitable financial advice. This means that, historically, there may be a lot of reasons investments are mis-sold.
Common Reasons Investments are Mis-Sold
There are a number of reasons that investments may have been mis-sold. Here are some of the common reasons why:
- The risks associated with the financial product were not explained to you. The advisor should have assessed your attitude to risk and recommended a product that suits your own risk profile and your capacity to make a financial loss.
- An advisor did not give you the correct information, or did not tell you how your money would be invested. They also did not tell you about the risk involved with that investment. So, you ended up with a product that is not right for you.
- You were not made aware of additional charges and fees which you have incurred following advice. The advisor should provide you with illustrations detailing how the initial and ongoing charges may impact on your investment.
- The advisor did not assess your personal circumstances. An advisor should consider your personal circumstances such as your income, future financial plans, existing investments, and previous investment experience; so that they can recommend the right product for you.
- The advisor did not give you the full range of investment options or products. Some advisors were acting as ‘tied agents’ for their place of work. Consequently, they were only able to recommend products sold by the bank or financial institution they worked for. This means the advisor may not have given you your full range of investment options.
- You experienced hard sales tactics and felt uncomfortable or pressured into an investment that you didn’t really need or want.
If you have experienced any of these, then you may have been mis-sold the investment and may be able to make a mis-sold investment claim.
How We Can Help
Here at The Compensation Experts, we work with solicitors who have years of experience with financial mis-selling claims. This means that they can help with the most commo reasons investments are mis-sold when making a claim. If you think you may have a potential claim, contact us today by filling in or contact form. Or call us to speak to one of our friendly knowledgeable advisors.