Mis-selling solicitors usually deal deal mis-sold financial investments on a no win no fee basis. Solicitors usually offer No Win No Fee arrangements and clients typically pay 25% of the amount recovered to those solicitors as a success fee, although this is usually subject to your individual circumstances and the actual amount to be paid may be less than this but it will never be more. This type of investment also known as 'guarantee income bonds', 'precipice bonds' and 'with profits bonds' is at the centre of a current national scandal relating to mis selling which arises when the seller fails to communicate relevant information to the buyer which encourages the buyer to purchase a product that the they would not otherwise buy had all of the information about the product been properly disclosed.
There are many ways in which these products can be mis sold however mis selling most commonly relates to a failure to advise that the purchase money is actually invested in the stock market and that investments can go down as well as up. Failure by the seller to fully disclose all risk can give the investors advisors grounds to claim mis-sold investment bond compensation.
The basic principle relating to bonds is that a private company takes contributions from a number of investors and creates a single fund which is then invested in the stock market. The company can often show a reasonable track record to prospective investors with increased value of all managed funds especially when the stock market is rising. Funds set up in the eighties and nineties did appreciate considerably however by the end of the nineties the stock market had faltered and many investments slowed, stagnated or went into decline. Many investors found that their share of the fund was no longer worth the amount they had paid and that they were showing a loss.
The Financial Services Authority which governs the industry has now made it clear that the seller of a financial product is liable to pay the buyer mis-sold investment bond compensation in appropriate cases. If the seller refuses to pay compensation or makes an inadequate offer then the buyer has the right to refer the matter to the Financial Ombudsman Service (FOS) who can order the payment of compensation. If the buyer is not satisfied with the FOS decision then the claim can still be taken by a solicitor to a court of law in order to determine liability.
It is estimated that at least 70% of all financial investments have been mis-sold in the United Kingdom with the Financial Services Authority indicating that the main cause for complaint relates to an inadequate level of communication between the seller, who is often in Independent Financial Advisor (IFA) and the buyer client however this may mask the true reason for mis-selling investments which is often down to incompetence, negligence and dishonesty by the salesman. Recommendation of the wrong product by a salesman often implies that the salesman is more interested in claiming substantial commission, often running on for years, rather than ensuring that the client invests in the best product for them.
Most financial investments have been mis-sold giving the buyers advisors the right to claim compensation for losses from the seller. There are numerous investment mis-selling grounds upon which to base a claim for loss including :-
Miss-sold investment solicitors deal with compensation claims for investment bonds, mortgages and pensions. Expert support may improve your chances of securing the maximum compensation