FOS backs adviser in client complaint about unregulated investment

Client placed £150,000 into fund which was eventually wound down

Hope William-Smith
clock • 2 min read

An adviser who left £150,000 of a client’s money in a now-wound down fund which included a portion of unregulated investments should not have acted differently despite the client losing money, the Financial Ombudsman Service (FOS) has determined.

In a case study published today (24 October), the FOS said that client ‘Barry' had transferred £150,000 to a new fund on the recommendation of his financial adviser of 15 years. The ‘wealth generation' fund included a proportion in unregulated collective investment schemes (UCIS) and Barry had raised concerns over the fund's poor performance 12 months after the initial investment was made. The ombudsman heard Barry's adviser "repeatedly reassured" his client that he should remain in the fund and that there was "nothing to worry about". Despite this, Barry was informed several months late...

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