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How to Avoid Being Mid-Sold Investment & Savings Plans

mis-sold investments and savings
Uploaded by: EMCAS 23.03.2016
In our 12 years’ experience within the financial claims industry, we have handled hundreds of cases of mis-sold investments as a result of clients being financially mis-advised.

The majority of investors are looking for opportunities to invest their money, with a view to securing their financial futures, which makes being mis-sold even more alarming.

With this in mind, we have put together some key facts for you to consider before you decide to invest.  

Do Your Research 

As I’m sure you’re aware when it comes to being an investor, research is crucial. The main reason why investors are often misadvised into investing into certain bonds, ISA’s and shares is because the questions they need to ask aren’t always that obvious:

  • What different investment options or alternatives could you take?

  • What profit can you potentially make?

  • Were you considered in a poor risk categorisation?

  • Was your affordability circumstances taken into consideration?

A large percentage of people who have been mis-sold investments aren’t sure what they need to know to benefit them, which is very common. Investment and savings aren’t an easy thing to understand, therefore being mis-advised on what investment is best for you is very easy.

Risk & Return Transparency 

Often advisors were at fault when it came to being transparent with hidden fees and associated risks. Withholding information can influence your decision, impacting your future financial circumstances and the success of your investment.

Transparency also links back to research, when going into your investment with as much information as you possibly can will help. If you feel like your adviser wasn’t being honest with you, withholding information or not being completely transparent, then get a second opinion. 

The Pressure on First Time Investors

A known reason investors don’t always make the right investment choice is down to pressure selling and the use of financial jargon.

Some investment opportunities will be better than others, but it is always best to be extra vigilant when assessing your options. Having a second opinion is always advisable, especially if you are to take on increased level of risk to increase your potential returns. If you feel your financial advisor hasn’t disclosed motives or seems driven by promised commissions, then ensure that you take your time to make your own decision.

It’s important to do some research so you are fully satisfied with the level of information that has been given to you. If this is not the case and you still feel like you’re left in the dark, you can always take time to think and come back to it after you’ve had the opportunity to go through and thoroughly understand all the information.

Trusting your Financial Advisor

When it comes to your financial advice we often find that people can be too trusting, whether you’re a first time investor or not. It is true that it’s in the advisor’s best interest to have you achieve high returns, yet historically some advisors worked on a fixed commission per plan sold.

All of these tips are relevant to all types of investors. This is why we strongly recommend that any investor, first time or not take their time to ensure all of the above factors are addressed before making an investment.

Here at EMCAS we’ve been helping our clients claim back what they are rightfully owed for over a decade. We’ve claimed back more than £300 million pounds and helped over 700,000 clients find out if they have been mis sold.

If you have already invested or are unsure about your situation, or think you might have been mis-sold, you can call us on 0800 0272484 or fill out a contact us form for a specialist to call you back.

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