Home > Financial > Your Investment Rights

Your Investment Rights

By: Chris Nickson - Updated: 21 Nov 2010 | comments*Discuss
 
Consumer Rights Investments Life

Investing for the future is a great idea. If you invest wisely and steadily, you can make sure you enjoy a comfortable and possibly even early retirement. But exactly what kind of rights do you have with your investments?

What You Should Expect

What should you expect from someone advising you on your investments? Professionalism is a given and a thorough knowledge of everything involved. They should give you proper information so you can make your decisions and in the event something goes wrong, have good established procedures for complaints and compensation.

Every firm in the investment business in the U.K. has to be licenced. Their salespeople must at the very least have a minimum qualification, like the Financial Planning Certificate or others. If the person who comes to see you is a trainee, the supervisor with him must be fully-qualified.

If through a sales person's negligence or fraud, you buy an unsuitable product, there are some regulations to give you protection and the offending individuals can be banned from the business, while rule-breaking firms can be fined or lose their licence. This only applies however, if you took their advice to buy a product. If you didn't take advice first, you're on your own.

Perhaps most importantly, the advice you're given should be right for you, to help you achieve your goal whilst fitting in with your current financial circumstances.

Before You Buy

The first thing any sales person should do is give you an initial disclosure document and tell you their terms of business. They should also tell you not only the main features of their products, but also the amount of commission they make on the sales of them to you. Finally, they should tell you your cancellation rights.

After You've Bought

There are two things you should receive when you've purchased a particular product. The first is a key features document. This describes the product, as well as what you pay and your risks. The second is a "suitability letter," which explains why the sales person recommended that particular product for you.

Stocks

The stock market is a gamble for those who don't know it well, but plenty of people have made money in it. You make your trades through stockbrokers, many of whom carry insurance cover to protect you (you should always check first); that way, if your broker files for bankruptcy or has been proved to be fraudulent, you might be able to reclaim some of your money.

ISA

An ISA is run by an approved manager. That's not an individual, but a firm that's authorised to deal with many different financial institutions. If you take out an ISA, you might have to pay fees to the manager. Although you can switch ISAs, you might have to pay a transfer charge, the ISA manager isn't obliged to accept your transfer and you're not allowed to transfer your ISA from one type to another (from cash to stocks, for example).

Life Insurance, Investments and Personal Pensions

If you have a complaint about any of these firms, then by law, they must have proper internal complaint procedures and belong to an independent arbitration scheme. In the event of an insurance company or investment firm declaring bankruptcy, you should be at least partly protected by FSCS

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Latest Comments
  • ConsumerRightsExpert
    Re: Dealing With Cowboy Builders
    Paulio - Your Question:Back in 2010 we had a loft conversion done, by what looked like a reputable company who were local and had…
    20 October 2017
  • Unhappy
    Re: When Am I Not Entitled to a Refund?
    With reference to my previous comment, no it was not made to measure. The website offers items made to order in set sizes…
    20 October 2017
  • ConsumerRightsExpert
    Re: When Am I Not Entitled to a Refund?
    Unhappy - Your Question:On 1st September I ordered some handmade clothes for my baby. They arrived on 19th October…
    20 October 2017
  • Unhappy
    Re: When Am I Not Entitled to a Refund?
    On 1st September I ordered some handmade clothes for my baby. They arrived on 19th October (website states 4-6 week…
    20 October 2017
  • amyamyamy
    Re: Dealing With Cowboy Builders
    Dean blues. Must the the UK's most dangerous and prolific cowboy builder. Joi the facebook group against him and help stop this…
    20 October 2017
  • Russo
    Re: What If Your Plumber Makes Mistakes?
    Had a new shower tray fitted on 9 November 2016 and last week a crack appeared In the tray running from the door towards…
    19 October 2017
  • Kellywalsh
    Re: Buying a Used Car: Your Rights
    I bough 11 c4 7 seater 10 months ago paid 13900 he gear box and fly wheel has gone do i have any come back ?
    18 October 2017
  • Paulio
    Re: Dealing With Cowboy Builders
    Back in 2010 we had a loft conversion done, by what looked like a reputable company who were local and had excellent reviews…
    18 October 2017
  • Sally
    Re: The Structure Warranty on My Sofa?
    DFS have come to my house so times the leather was patchy so they couloured it in finally they recovered the seats on my 2…
    18 October 2017
  • ConsumerRightsExpert
    Re: What If Your Plumber Makes Mistakes?
    Sam - Your Question:Hi. We have received a water bill from Thames water for £12k and been informed by them that there is…
    18 October 2017
Further Reading...
Our Most Popular...
Add to my Yahoo!
Add to Google
Stumble this
Add to Twitter
Add To Facebook
RSS feed
You should seek independent professional advice before acting upon any information on the ConsumerRightsExpert website. Please read our Disclaimer.