An independent adviser has been told he will not have to compensate a client he recommended invest in a Keydata product, even though an ombudsman ruled he had given unsuitable advice.
In a provisional decision by the Financial Ombudsman Service (FOS), it was outlined how a 'Mr W' was advised to invest £15,000 in the Keydata Secure Income Bond 3, held by SLS Capital, in 2005. Despite reaching the conclusion the advice was inappropriate and the client did not have the appetite for the risk involved, the FOS said it was the "misappropriation" of funds within the bond that was the main cause of his client's loss. "While the IFA was wrong to recommend that Mr W should invest a proportion of his capital in a Keydata bond - and Mr W has undoubtedly suffered as a result - ...
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