Adviser put third of 90-year-old's investment into Keydata

Laura Miller
clock

The FOS has ruled an IFA who put a third of a 90-year-old widow's money into Keydata while she was in a care home gave unsuitable advice.

FOS' adjudicator says the £44,000 investment in a Keydata Secure Income Plan, approximately 31% of the elderly widow's retirement fund, was not "sensible advice". He also rules the investment was unsuitable because the "arrangement is complex and sophisticated" , and the 90 year-old or her son who legally took advice on her behalf would have had "difficulty appreciating the risks involved in this arrangement". FOS recommends the unnamed IFA pay the woman compensation of her orignal investment, less any income received, plus compound interest at Bank base rate from the date of the inve...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read
Why non-transparent managers are behind most failed acquisitions

Why non-transparent managers are behind most failed acquisitions

‘They don’t understand the importance of culture and cohesion’

Rami Cassis
clock 12 April 2024 • 3 min read
Partner Insight: Understanding the investment universe

Partner Insight: Understanding the investment universe

Invesco
clock 12 April 2024 • 6 min read