After receiving numerous complaints in relation to investment losses through unsuitable advice, Full Circle Asset Management went into administration.
The Financial Ombudsman forced Full Circle to award their clients with damages payments after it was found to be the case that the company moved away from clients’ risk profiles, as well as not advising them correctly.
Risky Investments
The High Court determined Full Circle’s clients had a large proportion of their investment portfolio put into financial products that were high risk, taking the pre-agreed risk level too high.
The Financial ombudsman is currently in the process of reviewing approximately 25 other similar complaints made by Full Circle clients.
After their £1.5 million investment was reduced by in excess of 50%, one client took the company to court, stating that this loss was caused by the company breaching their contractual terms on how they managed their money.
Compensation Considerations
Not long after this happened, Full Circle Asset Management went into administration, resulting in many of their clients not being issued with all of the compensation they were entitled to.
Because the company attempted to have one of the decisions made against it in court turned over, it meant that there were delays in the process of clients being able to raise a complaint. Full Circle believed that the decision made by the Financial Ombudsman Service was not in line with the guidance given to it by the Financial Conduct Authority (FCA). However, this was eventually thrown out of court.
The complaint that the financial ombudsman received related mainly to the advice that clients received during the process of being sold investment opportunities. The advice given was not consistent with the level of risk they were comfortable with.
Act Fast
Anyone who has been a client of Full Circle and has lost money, should act now. You should begin by reviewing any and all transactions that were made with them, and then get in contact with our team of experts if you have any concerns regarding the advice you were given. However, you need to act fast as there is only a limited window of time.
