Investments are made for a variety of reasons – and inflation is usually the contra-indication to investments. However, a bigger issue in recent times has been the adviser who sells an investment with high charges, and a higher risk than the client is prepared to take.
Generally, Bonds have been sold because they pay a higher commission than other types of investments. Banks have been fined heavily for mis-selling of Bonds.
An investment should be suitable for your personal circumstances, taking into account your other investments, age, occupation, income, tax position, prospects, family etc. The advice should establish your attitude to risk. This would be different for a pension from general investment. Since 1996, advisers should have supplied a “Reasons Why” document before the sale which should have matched your risk to the investment.
If the charges, risk, and term did not match your requirements at the time then you may be due compensation.
Investment mis-selling is a result of bad selling practices ranging from pressurised sales staff with unrealistic targets, to questionable management at some of the country’s leading institutions.
Investment In Bonds
Investment Bonds are life insurance policies where you invest a lump sum in a variety of available funds. Some Investment Bonds run for a fixed term, others have no set investment term. When you cash Investment Bonds in, how much you get back depends on how well – or how badly – the investment has done.
Bonds have been sold to many customers because the adviser can earn high levels of commission from them. If you have been sold a Bond, you could have been mis-sold this because there may have been more suitable products available to you at the time. If your Bond is showing a loss, or very little growth, then you should look to make a claim.