'There's no investment need that can't be met the regulated way'

Philip Milton, of Philip J Milton & Company, said: "There is nothing whatsoever that exists on this earth that you can't invest in through some form of regulated process, if it is something that's going to be of any good to you.

"People get sucked in by all sorts of things. All the costs and the pressures that we have to be regulated at the highest possible degree, and still they're thinking 'oh I can invest in Whisky' or wine or whatever else it is. It's not the same thing and if you haven't go that regulatory protection...then just don't touch it."

Milton was speaking on this week's FTAdviser In Focus podcast which hears first-hand accounts from advisers about their experience with helping investors in trouble, whether it be after a scam or a national pension scandal.

Before you know it you are two and three years in, then five years in, and then you look back and think 'Jesus Christ, that took a lot of time'.Al Rush

Milton has helped numerous investors bring cases to the regulatory dispute bodies, and to rebuild their portfolio after things went badly wrong. 

He said if there is a regulatory aspect to the process then there is at least some hope of recompense but for unregulated sales or outright fraud there is very little hope of getting any money back.

Helping investors in trouble can quickly become a full time job, often involving claims work, emotional counselling and portfolio restoration work, but it's also a "privilege", said Al Rush, principal of Echelon Wealthcare, who is best known for leading the British Steelworker's fight for fair compensation.

"Your relationship does become a far more personal one...when I was there for them I am there for them and they come to you with all sorts of problems, all sorts of scenarios and situations.

"You do become not just a financial adviser, you do become a confidante and a counsellor and a helper and it can be draining, I will get 10 or 15 text messages and emails a day sometimes from people I don't know and we try and help absolutely anybody without fear or favour."

Neither Milton or Rush are doing the work to make money.

Though Milton has set up a CMC for regulatory purposes, he does many jobs pro bono and when charging, his fees hover around the £500 mark, unlike commercial CMCs which often charge up to 30 per cent of the claims amount.

"You get involved in this because you're bloody minded, you're stubborn and you've got a sense of outrage about how these brilliant people have been ripped off by some shyster," said Rush. "And then it's Pandora's box.

"Before you know it you are two and three years in, then five years in, and then you look back and think 'Jesus Christ, that took a lot of time'. But I suppose it's your outlook that says whatever it takes...I'm going to beat it and we're gonna win."

To hear more about Rush and Milton's experience with victims of bad investment decisions, where their pro bono works stops and charging begins, and their experience of working with the regulatory bodies, click on the link above.

carmen.reichman@ft.com