Mis-sold Shares

Share Dealing

Share dealing is when you buy or sell shares in a public limited company on a recognised stock exchange. When you buy a share, you become one of the company's owners and you may be entitled to a share of any profits it makes. However, this investment can be highly risky if the client is not well advised, impacting negatively the investment. 

Nowadays, stock brokers and advisers are paid large commissions or sales incentives, for selling a particular investment product (such as small cap stocks). This type of compensation is generating a conflict of interest as it is potentially preventing the financial advisor from acting in the consumer’s best interest. Instead, the adviser is triggered by selling a product which brings the highest personal benefit. 
 

You may be eligible to make a claim for compensation if:

 

  • You were wrongly advised about your investment options or the advice given by your financial adviser was unsuitable, unreliable or negligent and has resulted in financial loss

 

  • You were encouraged by pressure sales to investment in securities you didn’t understand or you were advised to trade on margin without knowing the added risks

 

  • The potential risks and downsides of your investments were not fully and properly explained to you by your financial adviser. This can include not adequately disclosing price, risks, liquidity, or any other material facts. Therefore, you did not have all the necessary information you needed from your financial adviser to help you make a fully informed decision

 

  • You were unaware of additional costs and unexplained fees attached to your investments because they were not fully explained to you and that there was a lack of transparency

 

  • You were promised guaranteed high returns that never materialised

 

  • Excessive losses in your portfolio resulted from most or all of your money being invested in one type of security or market sector, such as mining

 

  • Your financial adviser/stock broker ever made a purchase for your account that you didn’t agree to in advance. There are only two conditions under which a broker can transact on your behalf. The first is if he’s granted discretionary authority, and the second is when you give him express and detailed permission. Anything less is possibly eligible for claim compensation

 

  • There has been excessive trading in your account in an effort to pursue quick profits. Has the same stock been bought and sold multiple times? If your stock broker was in control of your account, then churning may have occurred and you possibly will be eligible for compensation

You are not required to use the services of a Claims Management Company to pursue your claim; as you could present your claim yourself for free to the Financial Advisory firm. If your complaint is not successful you can refer it to the Financial Ombudsman Service (FOS) or to The Financial Services Compensation Scheme (FSCS) if the Financial Advisory firm is no longer in business.

Palmira Capital Limited registered office:  Whins Lodge, Whalley Old Road, Langho, Lancashire, BB6 8DU, UK. Registered in England company number 11357812. Palmira Capital Limited is authorised and regulated by the Financial Conduct Authority (see the FCA register at www.fca.org.uk/register/ reference: 838259

Palmira Capital Limited is registered with the Information Commissioner (ICO) Registration: ZA474904