The Financial Ombudsman Service (FOS) has ruled in favour of a client against advice first received in 2001, after more than the six year limit for complaints.
The client made the complaint against Broadbent Mawson Financial Consulting about advice to take income drawdown and invest it in Sterling Mortimer Majestic Village No.3 property fund, an unregulated collective investment scheme.
The FOS said it found "little to support" the view that the client had a "balanced" attitude to risk as Broadbent claimed, and found that income drawdown had been "inappropriate" and "unsuitable" as it represented too great a risk for the client.
Also, the FOS ruled that while there was some evidence of a discussion about an annuity purchase this option had not been presented in a "balanced manner".
Broadbent Mawson was found not to have treated the client's initial complaint properly because it failed to provide a final response with referral rights inviting the client to bring the matter to the FOS if he remained dissatisfied.
"I had seen no evidence that [Broadbent Mawson] had treated [the client's] concerns as a complaint about the 2001 advice and therefore I did not consider his complaint out of time," the financial ombudsman stated in his decision.
Broadbent Mawson must work out the client's total past losses and pay that in redress, plus compound interest.
A spokesperson for Regulatory Legal, which acted on behalf of the client, said: "Once again an IFA firm has sold a clearly high risk product as low risk. Every time this happens firms will lose and be ordered to pay redress. "
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