Recent Success in Financial Mis-Selling High Court Action
By Jonathan Jackson – Associate Director. Published 9 August 2018.
Our client was a private individual. He had recently left his employment during which time he had acquired a significant portfolio of assets and enjoyed the benefit of a reasonable pension scheme. Following his employment terminating, he sought pension advice from an FCA regulated financial adviser (the “adviser”).
Our client made it clear in his consultation with, and instructions to, the adviser that he had a cautious approach to risk. The adviser in this situation owed various duties to our client under the Financial Conduct Authority (“FCA”) rules and common law, including requirements:
to provide appropriate guidance and information in relation to investments;
to ensure that any investment recommendations were suitable – this required reference to be made to our client’s risk profile.
Despite being categorised as “low risk” by the adviser, our client was nonetheless advised to exchange his existing pension rights (which were accompanied with associated guarantees as regards income levels) for an alternative pension arrangement. This was despite the fact that the recommendations from the adviser would require underlying investments to attract substantial returns, predicated on a particularly high interest rate, in order to deliver anywhere near the forecasted income levels required by our client.
In hindsight it was clear, particularly in the context of the prevailing economic climate, that the forecasted income levels were unrealistic and the investment recommendation was “high risk” from the outset.
With our client unable to reach a satisfactory resolution following pre-proceedings complaints, including complaints to the Financial Ombudsman’s Service, MKB Law initiated High Court proceedings on behalf of our client claiming for substantial six figure losses which had been sustained as result of the advice received and acted upon.
In the course of prosecuting the High Court proceedings, favourable Terms of Settlement were achieved for our client, providing for a significant sum of compensation to be paid to him.
I am an Associate Director in MKB Law and personally took carriage of the financial mis-selling case outlined above. I specialise in civil litigation, with a particular emphasis on commercial and financial matters, and would be pleased to speak with any individuals or companies who believe they may be in a similar situation.