We’ve put together the biggest investment mis-selling news stories from the last month to help you stay informed.
An investment is mis-sold if you lose money on your investment as a result of poor financial advice from your bank or adviser. In recent decades, the banks have hit the headlines again and again for mis-selling and other financial scandals. Here are the latest headlines:
Some of the country’s most well-known footballers, including Rio Ferdinand, Robbie Savage and Danny Murphy, have lost millions on a mis-sold film investment scheme.
Former Arsenal striker Kevin Campbell is facing bankruptcy after losing £7million and Danny Murphy is due to receive a tax bill of several million.
Murphy spoke out about the situation: “A lot of this stuff was completely mis-sold and misrepresented.”
“We were the victims and you shouldn’t feel ashamed, you shouldn’t feel embarrassed.” He added. “We were just young lads trying to better ourselves and secure our future. I’m not ashamed to put my name out because we’ve got to expose this crisis.”
The Financial Conduct Authority has published a damning report showing that two-thirds of firms are still mis-selling unsuitable investment products to older people despite a number of fines and warnings in the last four years.
The report found that financial companies are talking pensioners – including one over 90 – into taking out 20-year investments. A random review of 150 customer investments showed that at least one quarter had a “high risk of unsuitability.”
MPs have warned that older people could risk losing their savings unless the Government starts to address the growing problem of pension mis-selling.
A report published in October 2015 emphasised that the recent pension reforms leave pensioners at greater risk from unscrupulous financial firms.
Huw Evans, Director-General for the Association of British Insurers, said that “savers need much greater access to information, guidance and advice.”
A year-long campaign by a whistle-blower has resulted in the Office of the Complaints Commissioner criticising the FCA for their handling of complaints against HSBC, which is being investigated after over-charging thousands of customers for credit cards.
Barclays have been fined £72 million for an ‘elephant deal’ carried out three years ago involving ‘politically exposed persons’. The FCA concluded that the bank had chosen to run the risk of being used to finance terrorism or lauder money.
Santander announced a further £43 million in compensation for poor investment advice. This follows £45 million that they set aside for investment mis-selling in February.
The Financial Conduct Authority fined financial services firms 40% less than last year. Lawyers suggest the watchdog is more lenient without former boss Martin Wheatley.