Individual Savings Accounts were introduced in 1999 to encourage tax efficient savings. The limit was £7,000 each year and this has risen to £11,380 in current times and can be split into cash and stocks & shares. It is highly unlikely that a cash ISA will be a Mis-sold ISA but when a stocks & shares allowance is used this is often a Mis Sold ISA or Financial Product.
Investors capital is not secure in a stocks & shares ISA and the level of risk must be clearly explained by the adviser providing the advice, to ensure it is not a Mis Sold ISA. Despite being quite tax efficient, which means that the investment grows without being fully taxed, the value of a Mis Sold ISA can fall substantially.
Some ISAs are used to generate income and are often an excellent vehicle for supplementing income as any income produced is not taxable in the way that both earnings and pension income are taxed. However, if a client is taking income from their ISA this can lead to the capital value decreasing and, unless fully explained by the advisor, can be an indication of a Mis Sold Financial Product.
· You are able to complain by yourself if you wish for no charge and are not required to use the services of a Claims management company.