ripped off by financial adviser

a financial adviser has set me up with a mortgage at 9.6% interest rate, it also has an early redemption clause (which I though were illegal),

can I complaint to the FSA about him?

this remortgage was set up a couple of years ago to pay off some debt, looking into it he I found out he made 5k out of remortgage, which would have helped towards the debt,

Reply to
brnpt
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They are legal, depending on what the offer was.

You can try.

On what grounds?

He is in business to make money.

He certainly wasn't going to set it up for free.

If he made that much, then it must have been a fairly sizeable loan, and if you were in debt by that much, it may well have been difficult to get a standard rate mortgage to pay it off, so 9.6% may not actually be unreasonable.

You *might* have an argument that he did not get you the best deal he could reasonably have done, but I wouldn't like to rely on it.

Reply to
Alex Heney

The question of whether this is poor advice (about which you could complain) or the best he could do in the circumstances depends on the facts of your scenario. For example, if you had a poor credit rating at the time perhaps only more expensive lenders would get involved.

The place to start is the 'reason why' letter that you should have got. This will explain why he advised you to go with this particular product.

Reply to
Tommo

I shouldn't, but LOL. Never, ever trust a FA, they will rip you for whoever pays them the biggest commission.

Reply to
Tro.Jan

The point is *he* (the FA) did get the best deal - shame the OP didn't!

Tro

Reply to
Tro.Jan

Yes, the FSA give out annual awards in the New Year for such feats.

Reply to
Virgils Ghost

No. The FSA does not deal with complaints. You need to write to the adviser telling him that you are not happy that you were given the right advice. He should reply to you within 5 days telling you that he will look into it. Then within a month he should write back with his findings. Then you accept them or decline, as the case may be. If you can't come to an agreement, then you phone the Financial Ombudsman Service (or go on line to them) and get a complaint form. But they won't deal with you until you've exhausted all lines with the IFA.

By the way, early redemption clauses are not illegal. Why should they be? If the mortgage rate is artificially low the lender may wish to deter you from moving away too soon. What would you do if you were a lender?

Did you not go into this with your eyes open?

Rob Graham

Reply to
Rob graham

Not relevant if it was a Buy to Let or other non regulated product.

Also, the "Reason Why Letter" did not hold much weight prior to Mortgage Day in Nov 2004, but as a matter of good service a RWL should be sent regardless

Reply to
Willy

Not according to my sources, a record of the research is kept and if the one of the top three are not chosen then a note has to be made why and it must be signed by the client

Reply to
Willy

This only applies if the FA is directly authorised and not if they are an appointed representative of a network. If they are an AR then the network act as compliance manager

Reply to
Willy

Then your sources are wrong.

And of course, they won't way of find a way around that, will they?

Reply to
Full Name

My source is a managing director of an IFA firm, the industry is one of the most regulated in the country.

This simply cannot be done, as the FA has to use a certain software package that records it all for compliance and the network can remotely view said files etc

Reply to
Willy

Yes, that's true. But the principle is that the FSA doesn't get involved and hopefully the complainant and complainer can come to a suitable agreement.

Rob

Reply to
Rob graham

Not all IFAs, whether ARs or not, use any software package at all. I think you must be quoting the rules for your network. These rules may be house rules but not demanded by the FSA.

Rob

Reply to
Rob graham

You've obviously been bitten at some time. The comments you make border on the slanderous. The only way you could justify your opinion is to review a range of IFAs' files to show that you are right. Apart from not being able to access these you'll have a problem here.

Can you justify your opinion with some facts?

While I hold no brief for any particular sector of society I'm against your obvious bigotry.

Rob Graham

Reply to
Rob graham

if a network is used, on any complaint the FSA nor the FA get involved from the begining. If the IFA company is DA then a seperate compliance manager takes over and again niether the FSA nor the FA gets involved at the begining.

Reply to
Willy

I am not an IFA and am only quoting from that of my source, however, if no sourcing system is used, then apparently some other form of compliance system is used. From what i understand this sourcing software saves hours of searching.

Reply to
Willy

Yes, by complainant I should have said 'the person being complained about' and I was referring to the firm rather than a particular individual within it.

BTW, not every AR has to be a member of a network. They can be an AR of a non-network IFA and there are plenty of them in this position. I know of at least one AR whose principal is the compliance manager for the whole caboodle.

Rob

Reply to
Rob graham

Rob i am sure you are correct ;-)

I only made my statement because of the other negative posters making unsubstantiated accusations with regard to FA's

Reply to
Willy

I think you'll find all IFA's are already pretty well clued-up on who pays the biggest bungs. Hours searching not necessary! Tro

Reply to
Tro.Jan

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