The Financial Services Ombudsman claimed that they have around 3,000 complaints relating to the sale of split capital investment trusts, although they apparently expect another 3,000 before the end of the year.
The sale of the Aberdeen Progressive Growth Trust has been in the news recently and the Ombudsman ruled last week that the product was not mis-sold to consumers by independent financial advisers. This is a claim made by a law firm working on behalf of 8 independent financial advisory firms, but needs further clarification.
There have been many products sold and advised on that included investment in split capital investment trusts. Many of the complaints received by the Ombudsman relate to the risk of these products. The industry regulator, the Financial Services Authority said that they did not intend to undertake a widespread review of the sale of split capital investment trusts.
Our View
Many people that purchased products that included split capital investment trusts may not have been fully aware of the risks involved. If this is the case and they were advised to invest without fully understanding the downside, then mis-selling could well have occurred.
If you really believe that you have been mis-sold a product you should first complain to the company that advised you.
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