Millions of Britons could be stuck with mis-sold investment products, according to new research from leading claims management company EMCAS. It found that fewer than one in five consumers interviewed had all the alternative investment products explained to them, while only 22 per cent said the full pros and cons of their product had been discussed as part of the sales process. In addition, only 19 per cent of those polled said their investment adviser had been upfront about how they made their money - not a direct indicator of mis-selling activity by financial institutions in itself, but suggesting a potential lack of transparency in the advice and sales process.
"There will be many consumers who took out investment products that they knew had risks attached, and which are potentially performing poorly in the current investment environment", EMCAS chief executive Craig Bernhardt said. " But that is very different from those consumers who now look at their investments and don't understand how they were ever suited to their needs. These people need to look long and hard at their investments and then ask further questions about the advice they were given."