Missold Investment Claim vs. Other Financial Claims
Have you ever made a financial claim? If not, you may wonder what the difference is between a missold investment claim and other financial claims. In this blog post, we will explore the different types of financial claims and how they differ from each other. We will also discuss what you need to know to make a missold investment claim.
Types of Investment Claims
When it comes to investment claims, there are broadly two types: missold investment claims and other financial claims.
Missold investment claims arise when an investor has been misled about an investment, usually by their financial advisor. This could be through being given false information, sold unsuitable products, or pressured into making an investment decision. If you believe you have been missold an investment, you may be able to claim compensation.
Other financial claims include cases where an investor has lost money due to negligence or fraud on the part of their financial advisor or institution. For example, if your advisor recommended a high-risk investment that then lost value, you may be able to claim for the losses incurred. Similarly, if your bank or broker failed to carry out proper due diligence on an investment and it turned out to be worthless, you may also have a claim.
One of the most widespread missold investment claims nowadays concerns trading brokers. With the rising number of financial swindlers lurking potential investors into fraud, they had to find a way to convince potential financiers of their legitimacy. Therefore, they often misrepresent themselves as legit broker companies or licensed financial advisors.
How Are Missold Investment Claims Different Than Other Claims?
The main difference between missold investment claims and all other claims, such as pension or insurance claims, is that pension funds or insurance companies are typically domestic entities. They operate in your country and under local laws. Thus, pursuing justice in front of the relevant courts is relatively easy.
When it comes to investment claims, especially those involving online trading brokers, they’re mainly international. It’s necessary to determine under which jurisdiction the broker belongs and which court is relevant for the dispute resolution. Once determined, it’s necessary to get familiar with the laws of the country in question and file a claim in the proper manner.
Finally, when resolving other pension or insurance claims, funds are transferred to the solicitor, who pays their client after deducting the rewards. In case of missold investment claims resolved with Action Refund, victims are directly reimbursed.
Missold Investment Claim In the UK
Investment misselling occurs when an investment is sold to a customer without proper disclosure of the risks involved or when the product is not suitable for the customer’s needs. It is estimated that hundreds of thousands of people in the UK have been missold investments. Many of them are now looking to claim back their losses.
There are many different types of investments that can be missold, including but not limited to the following:
- Unit trusts
- Investment trusts
- Pension schemes
- Endowments
- Annuities
- Life insurance policies
- Derivatives
- Structured products.
According to the FCA report, over 47% of missold investment claims have been resolved successfully, and victims have been partially or fully reimbursed. Pursuing justice and finding the right recovery solution is halfway to the monetary recompensation. Therefore, it’s important to keep going.
Claim For Damages For Breaching the Rules of Financial Regulation in the EU
If you have been missold an investment product by a financial institution in the European Union, you may be able to claim damages for breaching the rules of financial regulation.
There are several types of financial claims that you can make against a financial institution in the EU, including misselling claims, breach of contract claims, and negligence claims.
A misselling claim is when you believe that you were misled about an investment product, and as a result, you suffered financial losses.
A breach of contract claim is when the financial institution breached the terms of your contract, and as a result, you suffered financial losses.
A negligence claim is when you believe that the financial institution was negligent in its duties to you, and as a result, you ended up with losses.
To claim damages for breaching the rules of financial regulation in the EU, you will need to prove that the financial institution breached its obligations to you and that, as a result, you suffered monetary losses.
Due to an increasing number of missold investments in the EU, this economic union introduced the MiFID II directive, obligating all the financial services providers to explain all the risks and be transparent with their investors.
In case you believe that your trading brokerage wasn’t transparent or that you’ve been dealing with a fraudulent institution, you can file a reimbursement claim.
How Can Action Refund Help With Missold Investment Claims?
Now that you understand the difference between missold investment claims and other types of claims, such as those related to mortgages or bank savings, let’s see how we can help.
First of all, we’re here to collect evidence related to the financial institution in question and the type of investment. If you’ve been dealing with an online brokerage, we must determine its regulatory status and legal jurisdiction.
Then, depending on the findings, we must start legal actions in front of the relevant authorities, most likely offshore. Since offshore financial regulations are not as stringent, we must create a detailed report about what happened and all the sides involved in the scheme.
Only then can we file a missold investment claim and ask for financial reimbursement. It’s a process that takes a lot of time and knowledge, financial and legal expertise. Finally, if everything goes accordingly, you as a customer are about to receive compensation.
Don’t hesitate to get in touch and share your story. We’ll evaluate your case during a free consultation and give you an honest estimate about the case. Contact us now.