Financial Ombudsman Service  

Adviser to pay after giving bad advice to ‘vulnerable’ client

“It’s also clear, in my view, that her late husband’s estate had not been resolved, something which appears to have left Mrs G with significant liabilities. There is no evidence that the adviser explored this issue.

“Clearly, this would have been crucial to have got a full picture of her finances.”

He also said Mrs G was not in a position to fully understand her financial situation going forward and the adviser failed to recognise this uncertainty which meant it would be difficult to make decisions on such a large amount of her capital.

But Mr Moss did agree it would have been reasonable to recommend she invest a small proportion of her capital in a cautious risk product.

Therefore, he ordered Springfield to put Mrs G as close to the position she would be in now if she had not been given unsuitable advice.

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