Have You Been Mis Sold Bonds?

The most widespread bad investment are investment bonds. This is because they are frequently mis- sold by sales driven bank staff and advisers looking to shift customers away from savings accounts. So if you think you have been a victim of mis sold bonds, contact us now for help.

Investment bond are whole- of- life assurance policies, into which people invest a lump sum for capital growth. If withdrawals are made, then they can also be income producing. It turns out that thousands have been mis sold bonds.

Investment bonds are often favoured by consumers as they can be on a unit- linked and with- profits basis, and the funds available are managed by professional fund managers.

Have I been mis-sold?

If any of the below applies to you, you may have been mis-sold an investment bond:

• You were a low risk investor, who did not want to endanger your capital but were advised to invest in risky funds and lost money as a result
• You needed access to your capital without penalty, and were not told that your investment bond did not offer this flexibility
• You were advised to invest in a with profits bond, and were told that they were risk free
• You needed to encash, or surrender, your investment bond within the first 5 years of the policy and weren’t told about the early surrender penalties
• If you invested in a with profits fund, were you told that the bonuses were guaranteed?
• Were you told that if you withdrew income from the investment bond regularly that it could come from the capital itself and not from the growth of the capital?
• If placed in trust, was the right trust selected?
• Were you a basic or non- taxpayer when the policy was sold?
• Were the charges fully explained to you? Did you know that the adviser’s commission is taken from your investment?
• Were you told that taking income from the bond is tax free, and hence preferable to other forms of investment/ saving?

Market Value Adjustment (MAV)

A Market Value Adjustment (MAV) or Market Value Reduction (MVR) is a characteristic of with profits investment bonds (including endowments).

The mechanism is often invoked by the insurance company when the policy is encashed by the policy holder, reducing the capital value.

If you have been sold a with profits investment bond, the application of the Market Value Adjustment has been highlighted as a particular area of concern for the FSA. If the terms of the policy were not disclosed at the sale, and you were not aware of the MAV, then you may have been mis-sold.

If you think that you may have been mis-sold bonds, or sold a bad investment, please call us now on 01442 825222, click on the live chat icon or fill in the form on the right.