The Financial Ombudsman Service has issued one final decision and two provisional decisions against IFAs who advised on the Stirling Mortimer Ucis investments.
All three decisions relate to investors who were advised to put money in the Stirling Mortimer No.4 Cape Verde fund.
The final decision, issued on 6 September, involved a 54-year-old widow who was advised to invest £100,000 with Stirling Mortimer. The ombudsman said the investor was led to believe the investments carried little or no risk by her adviser. The decision suggests the investment has no value with a fulll payout and the IFA keeping the rights to any residual assets.
The first provisional decision, made on 5 September, involves a 44-year-old who was advised to invest his £50,000 pension pot in the Stirling Mortimer fund using a Sipp. The ombudsman said the adviser failed to conduct a credible assessment of the client’s attitude to risk.
The second provisional decision, dated 6 September, involves a 79-year-old man whose adviser suggested he invest £25,000 in the fund. The ombudsman said the advice given was unsuitable for the client’s needs and requirements.
Law firm Regulatory Legal represented the three clients. Director Gareth Fatchett says: “We believe there has been wholesale misselling of the Sterling Mortimer funds.”