An IFA has been instructed to compensate a couple their entire invested capital in a Keydata bond plus interest after an ombudsman found he "completely disregarded" their interests when advising them.
The unnamed adviser must pay the couple - "inexperienced" investors who were both five years from retirement when they purchased the bond in 2005 - a total of £60,000 plus four years' worth of interest, capped at £100,000, according to a provisional decision by the Financial Ombudsman Service (FOS). The ombudsman ruled the adviser miscalculated his clients' attitude to risk and misled them on the security of the bond by overstating the involvement of "household name" HSBC. The couple bought Keydata Secure Income Bond Issue 2, which invested in US life insurance contracts, but they sto...
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