A well-known figure in the financial advice industry has lodged a split-cap complaint with the Financial Ombudsman Service claiming a lack of understanding of the risks in zeroes.
The individual, who has held directorships, has many years experience working in the IFA sector but has asked Leeds firm Pearson Jones for compensation on a split-cap investment on the basis of insufficient understanding of that type of product.
Pearson Jones is unwilling to name the individual who lodged the complaint for client confidentiality reasons but the case highlights the ease with which experienced investors can claim they did not understand products' risk profiles.
Pearson Jones associate director Yvonne Goodwin believes cases such as this, where investors have a clear understanding of investment issues should not get referred to an FOS adjudicator for further consideration.
She says: “I thinks it is outrageous that such a case should get beyond first base with the FOS – a service which was designed to protect consumers, not for use by individuals within the industry itself.”