My investments lost all their value
Leon* took financial advice to make some new investments, but the advice firm he used went out of business and his investments were worth nothing. Here’s Leon’s story of claiming compensation with FSCS.
After retirement, Leon was looking for opportunities to earn better returns than the low interest rates available on savings accounts at the time.
He was introduced to a financial adviser by an acquaintance. After some initial discussions, he followed their recommendations and in 2016 made some new investments. Unknown to Leon, the independent financial advice firm that had advised him failed in 2018. After making some enquiries in 2020, Leon was advised in May of that year that a number of his investments had lost all of their value.
A new financial adviser directed Leon to FSCS so he could make a claim for unsuitable investment advice. Less than five months later, Leon received £6,000 in compensation for one of his investments. He went on to receive a further £7,000 for additional losses.
Leon said, "Having invested in good faith based on supposedly sound advice, it was a relief to receive the compensation. Everyone at FSCS, from the very first call when I was very anxious, has been so supportive, helpful and approachable. I would encourage anyone who thinks they may have a claim to approach FSCS directly."
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*Identity changed for privacy. Photo used is stock imagery.
"Everyone at FSCS, from the very first call when I was very anxious, has been so supportive, helpful and approachable. I would encourage anyone who thinks they may have a claim to approach FSCS directly."