A presentation given by an IFA at a ‘money club' is set to cost the firm £45,000 in compensation after the Financial Ombudsman Service (FOS) ruled its slide show strayed into advice.
The FOS has upheld an investor's complaint that she received unsuitable advice from the firm - the name of which Professional Adviser is currently unable to disclose - despite the deal being transacted on a non-advised basis. Central to the FOS' judgement against the advice firm is that it should have known that highlighting and informing individuals of the benefits of an investment at an event co-hosted solely with the provider of that investment could, more likely than not, "induce" individuals to invest in the scheme. Ombudsman rulings are made on a case-by-case basis, but the unus...
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