Sanlam told to compensate client for 1988 savings plan sale

Bought plans in 1988 and 1989

clock • 2 min read

Sanlam Life & UK Pensions has been asked to compensate a client it advised to invest in "extremely inflexible" long-term savings plans more than 30 years ago.

The Financial Ombudsman Service upheld a complaint from Mr C, who bought savings plans with Sanlam in 1988, and again in 1989, while he was in his late 20s. The savings plan was advertised as one that would help people "cope with unexpected and unbudgeted expenses" but its fine print revealed it would only generate reasonable returns after 25 years. Mr C complained that Sanlam misled him into buying the plans without explaining the long-term commitment required for it to be a reasonable investment proposition. He paid £20 a month into the plan when he took it in 1988, suspended paymen...

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