Financial Advisor Misselling - Any advice?

[Mellotron]

As I said, perhaps there are some good ones - but please explain to me how can they be called Independent when they get a commission from the Company they recommend?

They're independent in that they can offer investments from a limitless number of companies, and it's completely their choice.

My parents recommend investments from Skandia, Sterling, CoFunds, Legal & General, Fidelity, Gartmore, M&G and many, many more.

IFAs have a lot more freedom than FAs.

 

[Eastleigh Seagull]

This is the Lloyds complaint procedure. Of course I don't know which bank your Grandfather was dealing with but I expect all the major banks have similar pages on their websites.

Lloyds TSB - Complaints procedure

It confirms that the financial ombudsman will only consider complaints once you have tried to resolve it with the bank in question, so you should definitely approach the bank first.

Good luck.

Thanks a lot. It isnt Lloyds, not that it really matters but in this case it was Abbey. I really didnt want to trigger a debate about IFA's - clearly this case most certainly wasnt an IFA - he was trying to push the bank's own products. My own experience with a lady IFA who works just outside of Southampton is that she has provided us with a brilliant service.

 

[East Staffs Gull]

Advisers often provide a letter of advice that sets out the basis for their recommendation. The adviser should have asked your grandfather what access might be required to this money and should also have considered the implications in the unfortunate event of the death of your grandfather.

 

[seajon]

Having worked as a branch adviser in the past I think that you will find that most banks will not let advisres deal directly with an individual over the age of 75 (sometimes 80). This is the case unless there is a family member present or independent third party. I would imagine that if in this case this did not happen a strong complaint regrading your grandfathers ability to completely understand what he was doing would lead to a successful complaint.

No bank would like the bad publicity that would be caused if this was to get out especially as the money is now required for care fees. Your grandfathers current situation at that time should also have been clearly documented.

 

[readingstockport]

Thanks a lot. It isnt Lloyds, not that it really matters but in this case it was Abbey.

Well that's a surprise - NOT.

Abbey are by far the worst of the lot. Before you can approach the financial ombudsman with a misselling complaint you have to have exhausted the banks own complaints procedure first. So the first step is to complain to the bank and then when Abbey do nothing, as they won't, take it further.

 

[Set of Tracksuits]

He approached a major high street bank who said they couldnt deal with this in branch and they would send out an advisor to see him. Being a stubborn old git he didnt ask for any family/friends to sit in on the meeting and didnt actually tell us it was taking place. It now appears that this financial advisor sold my grandad a three year investment bond with massive penalties for early withdrawal into which he put a large five figure sum. He now needs this money to help pay for the care home he is in. But of course he cant get at the money.

Firstly, I'd make an educated guess that what he was sold wasn't an investment bond (they tend to be open ended and not have a fixed term, such as three years) and is more likely to be some kind of structured product.

The fact that it offers a guaranteed return of 6% would be more consistent with a structured product as well.

The best thing he can do is to make a written complaint to the firm who gave the "advice". They will have a formal complaints procedure that they must follow. If they don't get back to you within 6 weeks, or they don't resolve the matter to your satisfaction you can take the claim to the Financial Ombudsman who have the power to demand compensation if they uphold your complaint.

Their website is: Financial Ombudsman Service

PM me if you need any assistance, I'd be happy to help.

On the side issue of the quality of advice available, always check that the financial adviser you are dealing with is genuinely independent, i.e. not tied to or owned by an insurance company or bank, and that they offer you the option to pay by way of a fee, rather than commission.

I'm an IFA and that's what we do.

 

[Eastleigh Seagull]

I love this place - thanks a lot everyone.

 

[Uncle C]

Here is an 'out the box' contingency measure.

If the penalties are punitive, it might just prove viable to let the investment run its term and to take out a separate short term, low interest loan for the period required. This may work out cheaper for you overall.

 

[beorhthelm]

i wonder how much the "massive penalty fees" are, usually they amount to no more than lost interest. alot of cash in real terms, but possibly money that would not have been there had it been in a regular bank savings account. and was he aware of the expected accommodation fees, if not and he said he didnt expect to touch the money for years, a 3 year fix rate sounds like a pretty good place. just a little devils advocate.

 

[Westdene Seagull]

Thanks a lot. It isnt Lloyds, not that it really matters but in this case it was Abbey.

Who are without doubt the worst, shitiest, scummy, fuckwit, wanking bank in the whole world, no, galaxy, no, UNIVERSE !!!! Hence their nickname, and frankly more appropriate name, Shabby National. A worse bunch of tossers you're never likely to meet ( and I include the participants of THE St Georges march in that ).

 

[Brixtaan]

Peston's Picks blog on the BBC is a fascinating place to learn all you wish to know about banking.I've been addicted for a couple of months and can now claim to be a learned armchair economist.

 

[Uter]

http://www.abbey.com/csgs/Satellite?appID=abbey.internet.Abbeycom2FPage%2FWC_ACOM_TemplateA2

Here's the Abbey web page about complaints. Very similar to the Lloyds page.

 

[Eastleigh Seagull]

i wonder how much the "massive penalty fees" are, usually they amount to no more than lost interest. alot of cash in real terms, but possibly money that would not have been there had it been in a regular bank savings account. and was he aware of the expected accommodation fees, if not and he said he didnt expect to touch the money for years, a 3 year fix rate sounds like a pretty good place. just a little devils advocate.

would be a good place if he wasnt 91 when the seller recommended he take it out.

 

[seagullsovergrimsby]

Surely a IFA or FA recommending this is just a greedy **** and doing it for the commission ? A person of 91 would really need a monthly income from their investment instead of tying it up for 3 years.