Caveat emptor? bdhSterling told to compensate knowledgeable client over unregulated scheme

Loss of £123,000

Ayesha Venkataraman
clock • 3 min read

The Financial Ombudsman Service (FOS) has sided with a client, who alleged that Chartered firm bdhSterling had provided unsuitable advice to invest a pension fund into an unregulated investment which then lost all its value.

The complaint stems from an investment manager of a venture capital business, Mr I, who sought greater returns on one of his pensions plans worth about £130,000. In 2012, his bdhSterling adviser recommended transferring the plan into a self-invested personal pension (SIPP), to facilitate an unregulated investment of £123,000 into Brazilian timber plantations via Global Forestry Investments (GFI). A fact find from a 2008 found he was on a salary of £170,000, had a house worth about £1m without a mortgage as well as a second property abroad worth £250,000. The client also had investments i...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA crackdown leads 24 CFD firms to cease operating since 2025

FCA crackdown leads 24 CFD firms to cease operating since 2025

Misuse of authorisation

clock 25 September 2026 • 1 min read
Steve Andrews: The rewards of doing the right thing

Steve Andrews: The rewards of doing the right thing

Immanuel Kant's categorical imperative

Steve Andrews
clock 21 September 2026 • 4 min read
FCA crypto registrations more than double ahead of landmark regulatory framework

FCA crypto registrations more than double ahead of landmark regulatory framework

Majority now achieve approval

clock 21 September 2026 • 2 min read