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Mis-Sold Investments

You may not realise you’ve been mis-sold an investment, or you may not know how to judge if the advice you received was unsuitable for your specific needs and situation.

Was I mis-sold my investment?

If you’ve lost money on an investment as a result of poor financial advice, you may be able to start a claim and get your money back. You can call us to discuss your investment – we can determine if you’ve been a victim of mis-selling – or you can read this guide to help you decide if you’re owed compensation from your investment provider.

Mis-sold investments are defined as

The negligent, deliberate or reckless sale of an investment, where the investment was misrepresented or unsuitable for your needs.

Many of our customers tell us that they knew they could lose money and were willing to take a risk. However, just because the bank told you about the risk it does not mean the advice was always suitable. We have helped many people in exactly this situation.

There are many factors affecting the performance of all investments, but there are particular questions you can ask yourself to identify whether you’ve been the victim of mis-selling.

How to judge if you’ve been mis-sold:

If your answer to any of the below questions is “no”, you may have been mis-sold an investment:

  • Did your adviser properly explain the risks involved?
  • Were you made fully aware that you might have lost money overall at the end of the agreed investment period?
  • Were you made aware of how much money you stood to lose over the investment?
  • Did the adviser clearly explain to you how the investment product worked?
  • Were the terms of the investment fully explained – were you made aware of the financial penalties for taking out your money early?
  • Were the annual management charge figures set out for you?
  • Did your adviser take due care and consideration over what you hoped to achieve from your investment?
  • Did your adviser ask what the returns were earmarked for – retirement, school fees, health care, and so on?
  • Did your adviser ensure that you had a good level of investment understanding?
  • Were you asked if you held other investments?
  • Were the alternatives explained if the investment proved unprofitable?

If you can reply “yes” to the further questions below, then you may have been pressured into a sale, and if that’s the case, you can make a claim for investment mis-selling:

  • Did the adviser lead you to believe that good returns were practically guaranteed?
  • Were you led to believe that your initial investment was completely safe, even if the returns didn’t materialise?
  • Did you feel pressured to make the investment?
  • Did your adviser seem intent on selling you one particular product?
  • Were you encouraged to move funds from an existing investment into another with a promise of higher returns?


ISAs are a popular, tax efficient way to invest. There is a maximum amount each tax year.

Managed Portfolio

These are usually for larger investments where the investor has sufficient wealth to diversify without pooling together with other investors.

Profit Bonds

These are lower risk investments which do not fluctuate in value from day to day. Instead, bonuses are added each year which offer a smoothing effect on volatility.


These investments offer a range of investment funds in a single product. Investors can take income of 5% each tear without paying immediate tax.

PEPs (Personal Equity Plans)

Personal Equity Plans are very similar to ISAs, offering tax efficient returns. In 1999 PEPs were replaced by ISAs.

Open Ended Investment Company

Open Ended Investment Companies invest in a similar way to ISAs but tax may be payable within the fund on any returns.

Unit Trust

Unit trusts offer the same investment as ISAs but are not tax efficient.

Capital Protected Bond

These investments offer security to some investors as all of the capital will be returned as a minimum when the investment term ends.

What’s the next step?

If you’ve read through the list and you believe you were mis-sold an investment and would like to have a conversation, call one of our experts on 01204 565331 or email A claim could result in you receiving thousands of pounds in compensation within 8 weeks.

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