A retiree who asked his adviser to review a recommendation to invest in Arch cru under a consumer redress scheme set up by the financial regulator has won compensation after taking his case to the Ombudsman (FOS).
The client, 66 at the time the advice was given in 2008, was wrongly advised by Newman Wright Financial Advisers to invest £15,000 of his pension savings into an Arch cru Investment Portfolio fund, the FOS has concluded in a final ruling. Newman Wright argued it met its client's request for a low risk option as the fund was marketed as such as well as being classified as ‘cautious managed' by the Investment Management Association (IMA). But the Ombudsman pointed out that the regulator at the time, the Financial Services Authority (FSA), had stated advisers should not rely on IMA secto...
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