Advice firm to pay redress after Cape Verde fund value plummets

£40,000 into Cape Verde fund

Sophie King
clock • 2 min read

The Financial Ombudsman Service (FOS) has told LJ Financial Planning to pay compensation to a client after he was advised to invest in Cape Verde properties via his SIPP.

Mr F, as referred to by the Ombudsman, complained about the advice that he received from LJ Financial Planning to invest part of his self-invested personal pension (SIPP) plan into the Sterling Mortimer Cape Verde No 4 fund. A representative of Mr F explained his objectives were to take a tax-free lump sum as soon as possible to repay a mortgage or buy a second properly and he wanted investment flexibility. After he had transferred from his occupational pension scheme into a new SIPP, the business recommended an investment of £40,000 into the Cape Verde fund via the SIPP. At the time,...

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