Coronavirus not to blame for investment losses

Investors could claim compensation if poor advice to blame for stock market losses

Savvy savers across the region have been urged to protect themselves f rom loss because of poor financial advice. Many lawyers specialising in recovering compensation on behalf of those affected say shares will inevitably be affected by major global incidents such as the coronavirus pandemic. However, they also believe many people are at risk of suffering additional, preventable loss due to the way their money was invested in the first place. And in some cases, many already have. Graham Harris, Claims Manager at Simpson Millar, said: “Over the last 20 years, investments have become the new norm for people looking to enhance their pension pots and get the maximum return on the money they have. “As part of this, we’ve all become pre-conditioned to think that if the stock market takes a hit due to a bit of a blip in the economy, or because of something that affects us globally such as coronavirus, that it’s just part and parcel. But that’s not the case!

“Unfortunately, some people who’ve made investments linked to the stock market have lost money, but they think that it’s just part of the risk.

“What many people don’t realise is that sometimes banks and financial advisors haven’t given their clients the best advice. “When a bank or financial advisor talks to their client, they should be finding out how much risk they want to take with their money and what their plans are for the money after the investment is over. “These discussions help the bank or financial advisor decide which products to recommend based on all of these factors. “After all, the type of investment that will suit someone who’s investing for retirement will be completely different to someone in their thirties who’s investing a bit of their spare cash.”

Graham believes some banks and financial advisers have not acted in their clients' best interests, even though people will have turned to them for advice on the risk involved and the suitability of an investment.

He said: “This is not dissimilar to what we saw with the PPI scandal. Professionals are meant to give the advice that is in the best interests of clients, but some investment products had large commission payments. “These commissions encouraged some financial advisors or banks to push these products onto people who they just weren’t suitable for, resulting in some clients losing some of their money.”

Simpson Millar is now offering f ree independent reviews to those who fear their investments may have been disproportionately affected as a result of mis-selling and are urging people to take action to help recover their losses.

Graham continues: “I know there are many people out there who are reading this story and recognise it.

“As an experienced Claims Manager I’ve helped people in this situation discover that they were sold an unsuitable investment.

“Once they’re aware of the situation, I’ve helped them to take action against the bank or financial advisor and, in many cases, get some of the money they lost back.” It’s quick and simple to find out if you were mis-sold an investment, so it’s easy to see why so many people are looking at this as an option.

Graham Harris, Simpson Millar