Attitude to Risk
The Financial Ombudsman Service is now dealing with complaints against the firm and has found that they failed to explain the terms of risk to investors.
Most people don’t realise that their attitude to risk should have been assessed and that any potential losses should also be explained, prior to any transactions taking place.
For clients of Full Circle Asset Management the difference between “average risk” and “medium risk” has led to huge financial losses which, because the possibilities were not made clear at the outset, were not anticipated by clients.
The Financial Ombudsman also found that the information given to the clients had been too technical for them to understand as well as being out of line with their attitude to risk
The Ombudsman Services and the Courts have both found that Discretionary Fund Managers have to engage properly with their clients and understand the scope of duty that they assume in relation to this client.
Most importantly they have to also consider the client’s overall investment objectives. when providing advice.
You May Be Able To Claim
It seems the Financial Conduct Authority is reviewing these companies – they stripped another firm, Beaufort Securities, of their permission last year.
It may still be possible for the clients of both firms to recuperate their losses. The first step is to call us and set the ball rolling.