The Mis-Sold Investments Claim Being Made Against Quilter and Friends Provident
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The mis-selling of investments is nothing new – and increasing numbers of companies are coming under fire for the way in which they sold their financial products to clients. The latest firms to be caught up in the mis-selling scandal are Quilter (previously Old Mutual) and Friends Provident – here’s more information about them both.
Quilter and Friends Provident – what happened?
Investors have launched a claim against the insurers Quilter and Friends Provident, due to the alleged mis-selling of high-risk funds via unregulated investment plans.
Their case hinges on the claim that:
- These problematic funds were sold to inexperienced investors, who didn’t understand the nature of the product, nor the risk involved.
- The funds were wrapped in life assurance products, then sold offshore (via the Isle of Man). This enabled the insurer to avoid certain UK regulations, which would have prevented inexperienced investors from accessing these funds.
Over £100 million of these investments were sold to clients; most of which claim they had no idea how risky the funds were.
Losing significant sums of money
The lawyers involved in the case claim that Quilter and Friends Provident concealed the risky nature of the funds from not only investors, but also the independent financial advisors who were selling them.
They claim that these ‘portfolio bonds’ were misleadingly described as life assurance policies, when they were unit-linked, and entirely unsuitable for those who hadn’t got a good level of investment know-how.
Regrettably, the funds have all collapsed, which has meant that all the investors are out of pocket – some by several thousands of pounds.
The accusation – and Quilter’s response
Industry figures have referred to the situation as: “… a scandal that Quilter International and Friends Provident sought to circumvent this, effectively scamming British pensioners out of their retirement savings.”
Quilter responded with: “Quilter International is the provider of the life assurance policy and does not provide advice in respect of any underlying investments, as that is the responsibility of the customer’s investment advisor… We will be robustly defending the claims.”
Friends Provident has yet to make an official response.
Did you invest with Quilter and Friends Provident in this way?
If you’re one of the many people who invested in the insurers’ ‘portfolio bond’ or ‘insurance bond’, then you may be in a position to make a claim against Quilter and Friends Provident. Remember, Quilter were previously trading as Old Mutual International, so if your investment was taken out with them, note that they’re the same company.
Seeking compensation
If you think you’re in a position to claim compensation as a result of being mis-sold to, get in touch with the Goodwin Barrett team by calling on 0808 163 1659 today or email enquiries@goodwinbarrett.co.uk.
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