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Is Your Financial Planner Licensed?

Posted on November 1, 2013

We recently had a meeting with someone who has lost all of their retirement savings. Over the last few months the financial planner (a family friend) had invested all the funds in high risk leveraged derivatives and currency trades with catastrophic results. We have made enquiries on behalf of this person and established that the financial planner was not licenced nor was he an authorised representative of a licence holder. As a result this person has no claim against compensation schemes nor is the advisor insured to cover client claims. The only redress for our client is a civil claim against an advisor who apparently has no assets.

The big lesson for everybody – make sure that your financial advisor is appropriately licenced. If you require assistance you are welcome to contact us.

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