What to do when Icesave leaves clients in the cold

Our client has a sum of money to invest. We carry out a full factfind including an attitude to risk profile and establish that like a lot of clients he wants a big return but with no risk. Further discussion and explanation that this Alice in Wonderland place he wants to go to does not exist, leads us down the inevitable conclusion that the only suitable home for his money is on deposit in a high interest bank account.

Yes, he has used his cash Isa for the year. “Oh well” I sigh as a commission based adviser, working for nothing again but at least I can sleep well in my bed tonight knowing that I have given best advice and done a good job for my client.

So we do a search and find the best rate of interest is with Icesave the Icelandic internet bank, so he thinks”That will do for me” and deposits his £100,000. I did say he should spread it around a few accounts but did I document it ?

Having seen the news last and that his compensation is only likely to cover half of his deposit, can someone answer the following:

nCan I be sued for giving bad advice ?

nWilI I ever get a good nights sleep again?

David Tindall

DPM Shepherds

Pentagon Centre