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Potentially dodgy IFA - what should I do? Any legal / financial bods out there?

10 replies

Pennies · 01/06/2007 13:32

OK to cut a long story not very short.

My mum is not short of a penny or too. To help her with it she has an Independent Financial Advisor who, over the years, has become indispensible to her. Some might say he has made himself indispensible to her. He is often round at her house and seems to have engineered a situation whereby he handles almost all of her admin - certainly to the point where he opens any mail relating to her investments.

A few years back I discovered that he had tried to get her to invest a six figure sum in an overseas property venture. This investment was not in any related to giving financial advice and infact was proposed as a joint venture with his wife. My mum - not wanting to offend him by saying no - tried to get out of it by trying to give the money to me and my bro which we both declined and when we realised she was wanting rid of the money we started ask questions and the whole thing came out. I wrote to him telling that I knew what he had done and that it was unacceptable. I sought advice from my cousin who's a lawyer for the FSA before writing to him and included a few phrases in my letter that would make it apparent to the IFA that I'd sought some kind of professional advice. My DH said we should have shoppped him to the FSA but my mum was DESPERATE for us not to. BTW my cousin said that even if we shopped him to the FSA then they wouldn't have done much about it which seemed strange to me.

My dad is also a client of his. Several years before this incident now, when his mum died he rented out her old house to another of this IFA's clients. This house had a flat which the tenant was at liberty to sub-let. The tennant sub-let it to the IFA when his marriage went wrong. THe IFA never told my dad he had moved into his property. I found out from my mum and told him. We thought this was dodgy, but did nothing.

Today I have learnt from my dad that he has discovered that the company that the IFA is trading under is no longer in business. DH checked on FSA website and this is true as of end Jan 07, however the IFA is still registered with the FSA but nunder a different company name. My dad has definitely received financial advice from the IFA in March and he didn't say anything about tradng under a new company name.

I just called my mum. She doesn't know anything either.

So, this guy who has twice beenquestionable in his integrity - to say the least - has failed to tell two of his clients that the company he was trading under is no longer operational. He is still registered with the IFA though so as I as I can tell he's not breaking any code of practice there, but it all still seems odd, especially as when he moved companies a while back and set up on his own we had new business cards a plenty from him and it was practically front page news as far as he was concered.

I used to be his client too until the property investment debacle at which I sacked him. Wish I hadn't as for me this is a case of keeping friends close and enemies closer IFYKWIM.

So, mum (who's practically in love with this man I think) will want me to do nothing - she will do nothing. Dad is wanting answers. DH is wanting IFA's blood and reckons that he is a legacy hunter.

I share DH's view and want to protect my mum from a potential conman but feel powerless and don't want to upset my mum by getting involved.

What can I do?

OP posts:
lulumama · 01/06/2007 13:35

sounds very very dodgy

why is he opening her post??

I would be very very wary...

there must be some sort of ombudsman

have a look at the moneysavingexpert site or motleyfool.co.uk

sykes · 01/06/2007 13:40

There is an ombudsman which should be your first point of call www.financial-ombudsman.org.uk/

Pennies · 01/06/2007 13:48

Great - have to pop out now but will look at those sites later.

Glad I'm not the only one who thinks it odd odd odd.

Lulumama - she had a brain haemorrhage (can never spell it) a few years back and is somewhat acopic about admin, sending Xmas cards, packing for hols etc now so he has stepped in to help with her post. I'm not sure to what extent his access is but as my dad was notified of the company closing by a company in which he has an investment then it would be easy for such a letter to be dealt with by the IFA (e.g. it has the Gartmore logo on the front so she just puts it in a pile for him without question I think).

OP posts:
lulumama · 01/06/2007 13:49

is there not a family member to open her post? can you do it? maybe get power of attorney

would be concerned someone with a vested interest in her finances is opening her post, especially if her faculties are not as good as they once were

edam · 01/06/2007 13:50

Agree with Sykes, I know your mother will be upset, but better that than let this guy get away with God knows what. He appears to be the sort of dodgy operator who could be up to no good at all. It's not unknown for people 'assisting' with investments to go as far as fiddling wills...

Call the FSA - they won't necessarily tell the IFA who the complaint came from (obv. you can check this out).

BreeVanDerCamp · 01/06/2007 13:51

I would threaten to get the fraud squad involved.

Pennies · 01/06/2007 13:57

Me and bro are all 150+miles away. She hardly has any friends. In fact she classes him as a close friend.

OP posts:
soapbox · 01/06/2007 14:05

Here you are - the FSA - they are the regulators of IFAs. You should ring them up and talk to them

sykes · 01/06/2007 14:58

I know various pf journalists/editors. It might make a good story but I'd contact the ombudsman/FSA first directly.

jura · 01/06/2007 15:45

This reply has been deleted

Message withdrawn at poster's request.

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