You can claim from the Financial Services Compensation Scheme if you have lost money because of poor investment advice about:
- Managed funds
- Stocks and shares
- Personal pension plans
- Long-term investments like mortgage endowments
You would only apply to the scheme if the company that gave you the advice has gone out of business. Otherwise you should talk to the company itself first.
You aren’t entitled to compensation just because an investment performs badly or you lose money.
Your loss must be because of any of the following:
- Bad or misleading advice
- Negligent management of investments
- Fraud or misrepresentation (for example, where you were told the investment was a particular kind of investment and it was something else and you relied on what you were told when buying the investment)
For example, if you asked for an investment with a very low risk of losing your money and your adviser recommended a high-risk investment, you might have a claim for compensation if you lost money as a result.
But if you deliberately took on a high-risk investment and then lost some of your money, you would not have a claim.
*Did Lloyds TSB or Scottish Widows suggest that you should invest your money in either “Acorn Market Linked Deposit” or “Protected Capital Solution Funds” marketed as simple low risk products? If so contact us today as you may be entitled to compensation!