What to Do If I Was Mis-Advised By My Financial Adviser?

There are situations that may arise whereby the financial adviser you had trusted to guide you on financial matters mis-advises you. This misadvise may have cost you your investment or income. There are several actions that you could take to remedy that situation.

But first, let’s consider what counts as mis-advise.

Image Courtesy – dailymail.co.uk

Image Courtesy – dailymail.co.uk

What Counts As Mis-Advise?

Mis-advise basically means that you received advice that is unsuitable. You were not given full disclosure about the risks associated with a certain investment. It could also entail that your financial adviser did not give you the information you needed regarding a certain investment or product and thus, you ultimately chose a product or investment option that you did not need, and was not ideal for you.

To illustrate: Suppose you went to an electronic store to purchase a music system and you mentioned to the storekeeper that you planned on listening to music via USB on it. The storekeeper recommends a certain model, and you purchase it. However, when you reach home you find that the music system is working, but it does not have a USB port. Well, the music system is not faulty, but it wasn’t what you needed. It was “mis-sold” to you.

In the same light, a financial adviser should endorse what suits your needs, disclosing all information regarding a certain financial course of action. Any action that is contrary amounts to mis-advise.

 

What to Do To Remedy the Situation

So what can you do to as a recourse to mis-advise?

  • Collect all information pertaining to the problem. State the facts of your situation and preserve any written proof of the matter at hand.
  • Present a formal complaint to your financial adviser. You can do this by approaching the internal complaints process system that he/she or the firm has. Normally, it should take eight weeks to get a response. If they don’t respond or respond unfavourably, present the case to the Financial Ombudsman or Pension Ombudsman if it’s a pension-related matter.
  • Approach the office of the Financial Ombudsman or Pension Ombudsman. These offices will provide a free service to you and would work on your case at no charge. Even so, you would want to do this at the specified timelines. The standard timeline is within 6 months after the feedback of the financial adviser. Before approaching the Ombudsman, you should have first presented the case to the internal complaints system of your financial adviser.
  • Normally most cases are resolved at the level of the However, if the Ombudsman responds unfavourably and you still feel that your case needs to be heard and determined otherwise, you could take the matter to a court. This should be the last fallback option owing to the financial implications it has. You should weigh the possibility of winning or losing the case before you resort to presenting the matter to court.

 

What if your case on mis-advise was admissible and you are actually supposed to be refunded, but the firm went out of business?

You could turn to the Financial Services Compensation Scheme for compensation. This scheme will follow up on your full compensation.

When you suspect or are sure of mis-advise by your financial adviser, do not hold back from seeking recourse. There are sure ways of seeking recourse. Take the necessary actions to protect your investment.

When you suspect or are sure of mis-advise by your financial adviser, do not hold back from seeking recourse. There are sure ways of seeking recourse. Take the necessary actions to protect your investment.

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