Investment Mis-selling

Investment mis-selling happens when a financial adviser recommends a product that does not match your circumstances, goals or appetite for risk.

Common examples include:

• Being told an investment was low risk when it was in fact high-risk or unregulated
• Not being informed of exit penalties, management charges or lock-in periods
• Being persuaded to transfer a secure pension into a self-invested personal pension (SIPP) containing speculative assets
• Being encouraged to invest in guaranteed return property, carbon or storage schemes that collapsed or never materialised

Under FCA rules, your adviser has a duty to ensure any recommendation is suitable and fully explained. If they failed to do that, you have grounds to claim compensation.

If you mis-sold an investment, you can usually claim compensation by following one of two main routes, depending on whether the firm is still trading.

Step 1: Complain to the Firm or Adviser

Start by writing to the company that advised or sold you the investment.

• They have 8 weeks to respond under Financial Conduct Authority (FCA) rules.
  
• If they accept your complaint, they may offer compensation to restore you to the position you would have been in with suitable advice.
  

You can find guidance on how to make a complaint on the FCA website.

Step 2: Escalate to the Financial Ombudsman Service (FOS)

If the firm rejects your complaint or fails to reply, you can refer it to the Financial Ombudsman Service.

• You must do this within 6 months of the firm’s final response.
• You usually have 6 years from the date of the advice, or 3 years from when you realised something was wrong.
• The FOS can award up to £430,000 for cases after 1 April 2019 (or £150,000 for earlier cases).

Step 3: If the Firm Has Gone Bust

If the adviser or firm no longer exists, claim through the Financial Services Compensation Scheme (FSCS).

• The FSCS can pay up to £85,000 per firm for investment losses caused by bad advice or negligence.
• You can submit a claim online and track its progress through the FSCS portal.

Step 4: Get Professional Support

The claims process can be technical and time-sensitive. Many people choose to work with a solicitor to ensure their case is presented properly and supported with evidence.

At TLW Solicitors, we manage the full process for you from complaint submission to resolution on a no win no fee basis.

We will:

• Review your documents and identify who is responsible.
• Prepare your complaint and submit it to the correct body.
• Track progress and manage all communication.
• Ensure the compensation offer reflects your true financial loss.

If you are unsure whether to go through the FOS or FSCS, we can advise you on the most suitable route based on your situation and when the mis-selling occurred.

• Mis-sold pension transfers
• Bank transfers or APP fraud
• Overseas property
• Store pods
• Hotel developments
• Forestry projects
• Carbon credits
• Contracts For Difference (‘CFD’s’)
• Diamonds & Gold
• Foreign Exchange (‘FX’ or ‘Forex’) trading
• Green oil
• Cryptocurrency

Whilst it is widely accepted that there are inherently high risks associated with certain types of investments your financial advisor has a duty to check that the proposed investment is sound and that the recommendation to invest is suitable for the level of risk that you are comfortable taking with your money.