The Financial Ombudsman Service (FOS) has told Integrity IFA to compensate a client after it provided unsuitable advice to switch the funds she held in a personal pension to a self-invested personal pension (SIPP), which were then invested in high-risk illiquid assets.
Mrs M, kept anonymous by the ombudsman, turned to Integrity IFA to review her existing pension arrangements, seeking her low attitude to risk to be reflected in her investments. The client said she was advised to switch her personal pension to a SIPP and set up a monthly contribution of £103. In December 2014, £57,409.39 was transferred to the SIPP and more than a third was placed into unregulated investments: £10,000 into ABC Bond and a further £10,000 into the Residential Regeneration Ltd Bond. Of the remaining funds, £8,000 was invested in a general investment account (GIA), which ...
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