How Do I Know If My Investment Bonds Are Missold?

There has been a substantial increase in the number of missold investment bond claims and complaints recently. Misselling of investment bonds is generally attributed to independent financial advisers (IFA‘s) and banks, who mis-sell products to their clients or investors in order to enhance their own income or commission.

As an investor, you need to be wary of any financial products that are forced upon you, particularly regarding investment bonds – without fully understanding the associated benefits and risks involved. Commission-hungry independent financial advisers and bankers may attempt to invest your money in some poor performing products to enhance their own earning potential, while not properly explaining all the inherent risks. Sadly, this can result in missold investment bonds.

It is important for investors to find out details about the investments in bonds, equities or any other financial products before making any investment; ask about the fee structure, renewal charges, qualifications and most importantly, the benefits and degree of risk to your investment. Your attitude to risk usually depends on your age, financial status and investment goals – and these factors must be considered before investing your money in investment bonds.

If you have already made an investment and you now want to find out if your investment bonds were missold, there are number of ways to establish this. Firstly, ask yourself:

  • Were the potential risk factors involved adequately explained prior to you investing in investments bonds?
  • Were your personal circumstances properly considered before your financial advisor or bank recommended an investment bond product?
  • Were you advised or rather convinced to invest – either all or most part of your money – into a single product?
  • Were you able to generate income as promised at the time of investing?
  • Were you made aware that the original investment capital sum can be eroded if there is insufficient growth?
  • Were you told about other available investment options?

These are some of the questions that will help identify if you have been missold investment  bonds. As learned from many misselling cases in the past, below are the top danger signs that should prompt you about investment bond misselling:

Does The Investment Bond Involve Too Much Risk?

Irrespective of your repeated requests for a low risk investment bond, financial advisers may routinely ignore such requests. No matter how many times you ask them to provide limited exposure products, this may be overlooked and improper advice given.

It is always recommended to be 100% sure about where your money is going. If you are inexperienced or unaware, please take help from someone else – independent of the investment – a friend or family member perhaps? Do not just reply on your financial advisor. He or she may have a monthly target to achieve and may as a consequence, be more likely to recommend inappropriate investments bonds (i.e. misselling).

Does The Investment Bond Tie You For Too Long?

If you need ready access to your money, the last thing that you will ever want to have is an investment bond that penalises you for taking out your own money. If the offered investment product ties you up for a long and fixed period to access your money, it should trigger a danger alarm.

Is Your Financial Advisor Putting All Your Money Into A Single Product?

Never put all your eggs in one basket.  The same applies to your financial investments. Do not put all your hard earned money into just one investment. Spread the risk by going for multiple products that can average out your return on investments. Check the types of investment products your money is invested into by your financial consultant.  Be suspicious if all your cash is being ploughed into one investment asset like shares or investment bonds.

If after taking all precautions you still end up with missold investment bonds, we at Missold Investment Bonds will be happy to help process your claim on the investments.