Question
Mis sold an offshore property bond by our financial advisers.
The FOS found in our favour and we were paid out what we thought we had lost at that time. We were then waiting for the fund to pay out the remainder of our redemption – which we were led to believe would be paid back shortly. The directors of the fund then suspended it, and 4 years down the line they are still holding our redemption payment “until further notice”. We are now seriously out of pocket (100,000's). The IFA has gone bust and our Insurance company who provide the wrapper for the fund is of no help.
Is there anything we can do to get our money back? We used our mortgage and a loan to finance the investment – advised by our FA. Answer
I'm sorry to hear about your predicament, sounds like you received shockingly bad advice.
Unfortunately I don't think there's a simple solution to this problem. The Financial Ombudsmen Service (FOS) obviously based the compensation awward on you being able to withdraw the remainder of the fund shortly afterwards. As this hasn't been possible you could revisit FOS to seek this balance, but even if they were to award it you (there's no guarantee they will) the IFA can't pay you the compensation as they've gone bust. The Financial Services Compensation Scheme (FSCS) could step in at this point (as the adviser would be declared 'in default'), but payouts are capped at £50,000 per person per firm - hence unlikely to cover the full amount outstanding.
Unless the fund managers are guilty of any dishonest (rather than dumb) dealings then I'm afraid there's probably no action you can take against them. I assume the fund remains suspended because they can't find a buyer for their property investments. if you can find out more about these underlying investments it might help you gauge the likelihood of if/when you're likely to get any money back.
The insurer is probably just providing an investment bond 'wrapper' rather than having any connection with the investment fund, so I can understand why they won't want to get involved, annoying though that might seem.
Given the sum invoved it might be worth your while taking legal advice from a specialist in this area, but I fear they won't be able to tell you any more than I've been able to.
Good luck and sorry I can't give a more positive answer.
Mis sold an offshore property bond by our financial advisers.
The FOS found in our favour and we were paid out what we thought we had lost at that time. We were then waiting for the fund to pay out the remainder of our redemption – which we were led to believe would be paid back shortly. The directors of the fund then suspended it, and 4 years down the line they are still holding our redemption payment “until further notice”. We are now seriously out of pocket (100,000's). The IFA has gone bust and our Insurance company who provide the wrapper for the fund is of no help.
Is there anything we can do to get our money back? We used our mortgage and a loan to finance the investment – advised by our FA. Answer
I'm sorry to hear about your predicament, sounds like you received shockingly bad advice.
Unfortunately I don't think there's a simple solution to this problem. The Financial Ombudsmen Service (FOS) obviously based the compensation awward on you being able to withdraw the remainder of the fund shortly afterwards. As this hasn't been possible you could revisit FOS to seek this balance, but even if they were to award it you (there's no guarantee they will) the IFA can't pay you the compensation as they've gone bust. The Financial Services Compensation Scheme (FSCS) could step in at this point (as the adviser would be declared 'in default'), but payouts are capped at £50,000 per person per firm - hence unlikely to cover the full amount outstanding.
Unless the fund managers are guilty of any dishonest (rather than dumb) dealings then I'm afraid there's probably no action you can take against them. I assume the fund remains suspended because they can't find a buyer for their property investments. if you can find out more about these underlying investments it might help you gauge the likelihood of if/when you're likely to get any money back.
The insurer is probably just providing an investment bond 'wrapper' rather than having any connection with the investment fund, so I can understand why they won't want to get involved, annoying though that might seem.
Given the sum invoved it might be worth your while taking legal advice from a specialist in this area, but I fear they won't be able to tell you any more than I've been able to.
Good luck and sorry I can't give a more positive answer.
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