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Mis-sold investment bonds

Many consumers are looking for financial stability coupled with a sense of flexibility in terms of available assets.

This is why investment bonds, such as capital investment bonds and with profit bonds, have proven to be a popular choice over the years.

And while there’s no doubt that many investment bonds can provide an excellent source of long-term stability, there are still times when a consumer may feel as if he or she has been the victim of mis-selling.

We may be able to help you if you think you’ve been mis-sold an investment bond. You can contact us today for advice and guidance and we’ll be able to see if you have a claim to make and, if you do, advise how you can move forward.


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What is an investment bond?

Investment bonds involve investing a lump sum into a variety of different funds. Your money and the investment are usually managed by an advisor or fund manager who will help you choose which funds to invest in.

Investment bonds are available directly from financial advisers and through insurance companies. There’s usually a minimum lump sum to invest (often between £5k to £10k) and it’s generally recommended that you’re comfortable with your money being tied-up in investments for at least 5 years before embarking on the investment.

Investment bonds allow you to make regular withdrawals up to a specified limit and the tax you pay on the withdrawal will be deferred until the next year. However some investment bonds come with surrender penalties, which is where you choose to withdraw bonds earlier than a pre-specified date.

With most investment bonds, there’s no guaranteed return. And in most cases, how much you profit from investment bonds depends on the success or failure of the investment.

Make A Mis-Sold Pension Claim

Fill in the form below and one of our team will be in touch for a free, friendly, no-obligation chat to assess your situation.

We’ll go through your options, your rights to making a claim and discuss how we can move forward. And don’t worry, this a free assessment and we don’t take any up-front costs.

Mis-sold capital investment bonds

Capital protected investment bonds are there to offer a low-risk investment opportunity to people who want bigger returns than, for example, a savings account.

While the aim is to provide a healthy profit on a person’s investment, capital protected investment bonds also come with a guarantee that whatever you initially contributed is returned, regardless of whether an investment failed.

The main types of capital protected investment bonds are: tracker bonds, with profit funds and protected funds.

Capital protected investment bonds can be subjected to charges, capped returns and costly exit rates. All of which are important to consider and be aware of before investing in a capital protected investment.

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Mis-sold profits bond

With profits bonds is a life insurance-based investment that requires a pool of people to make lump sum payments, which are then invested across a number of different opportunities, such as shares, securities, government gilts, and property.

A with profits bond fund is handled by an investment manager, who allocates the funds accordingly. Any profits are then paid in the form of an annual bonus.

The main intention of a with profits bond involves long-term growth as opposed to a sole source of life insurance coverage.

However, while it can work for some cautious investors, there’s no guarantee that a profit will be made. You can also be penalised for extracting your money early.


Have you been mis-sold an investment bond?

For many financial advisers, the sale of investment bonds are linked to the commission they get. This may lead to increased pressure from the adviser onto the client to invest.

You may have been mis-sold an investment bond if you have encountered any of the following:

  • A great deal of pressure was exerted during the actual sales process.
  • You were not made aware of management charges and fees.
  • The notion of surrender penalties was not mentioned or fully clarified.
  • You were guaranteed an ROI (return on investment)
  • You were guaranteed a specific rate of return.
  • The representative was not willing/able to provide you with proof of his or her certification.

If you think you have a claim to make, we’re happy to hear from you. You can contact us for a FREE initial assessment and we’ll listen to your concerns and see if you have a claim to make. If you do, we can advise you how to take it forward.


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How to claim compensation for a mis-sold investment bond

The good news is, there are a number of options available to you.

You can contact a team member at Spencer Churchill Claims Advice. The big advantage to this is that our experienced and knowledgeable team will give you bespoke advice and handle the claim on your behalf.

We’ll look at your case individually to discover if we think you can make a claim and then, if we can proceed your claim, work to get you the best result we can.

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