Advisers who recommended contracts for difference (CFD) trader Direct Sharedeal have been caught in the middle of a blame game after the firm was put into administration.
Financial advisers provided the bulk of the Glasgow-based stockbroking firm's clients through referrals to invest in its high-risk CFD investments. CFDs are highly leveraged, opening investors up to increased speculative gains but also large potential losses. Direct Sharedeal's trading of CFDs is the subject of at least 60 claims at the FOS which will now revert to the FSCS after the firm has been put into administration. Investors, some of whom lost 98% of their money in CFD trading, allege Direct Sharedeal failed to properly asses their attitude to risk or carry out any suitabili...
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