Wixted & Co made a claim for compensation for both the capital and interest losses and secured £56,500.
Mr W had a pension fund of almost £145,000 and required a secure investment which would provide a regular income during his retirement. He had a cautious attitude towards financial dealings and did not want to place his money at risk.
He had been considering taking a tax free lump sum from his pension and using the remainder to purchase an annuity. This would have provided him with a guaranteed income of almost £8,500 per year.
However, a financial adviser persuaded him to place the full amount of the pension fund into an investment plan instead. Mr W was not made aware that his capital was placed at risk by doing this. In a period of less than 5 years, the investment fell in value by nearly £48,000 and consequently reduced the amount of income he could obtain for his retirement.
He approached us for advice and we acted on his behalf in a claim for compensation for both the capital and interest that had been lost on the investment. We were able to negotiate a settlement of his claim. He received a total of £56,500 in compensation.