By Roy Gwinneth, Head of Investment complaints.
Mr and Mrs C. approached us after reading one of our articles about Mis-sold Investments in the Caravan Club magazine. They had been advised to put their money in Investment Bonds requiring a 5 year minimum investment period to avoid early encashment penalties. They felt something was not right as they had to draw the funds out early at a loss and incurred penalties for doing this, which added to their losses.
Our Mis-sold investments adviser soon discovered that although the investments advised by Co-Op Insurance services were appropriate for ‘Balanced’ investors, the amount of money the adviser recommended was excessive in relation to the amount they had available to invest and was not in line with a Balanced risk profile. On top of this, he noted that the Co-Op adviser suggested that they draw too much from the fund as a monthly income, this eroded the capital sum they had from which to gain the acceptable levels of growth which led to disappointing returns.
Royal London who took over the Co-Op Insurance accounts agreed with our assessment and needless to say, Mr and Mrs C. were very pleased with our services and the compensation awarded.