13% experience mis-selling when taking regulated advice

The Financial Conduct Authority’s (FCA) Financial Lives Survey which was carried out for the first time shows that at least 1.3 million UK adults believe that they have been mis-sold a financial product during some point.

13% who have received regulated advice within the last 12 months, claim they feel they have been mis-sold an investment or pension product.

Vulnerability and Increased Risk

50% of UK adults (25.6 million) display one or more characteristics that signal their potential vulnerability – they may be at increased risk of harm, or would suffer disproportionately if harm occurred. Potential vulnerability does not mean all people with these characteristics will suffer harm.

For all age groups, the proportions showing characteristics of vulnerability are around the national average of 50%, except that for those 75 and over the proportions showing vulnerable characteristics are higher:  69% for the 75s and over, and 77% for the 85s and over.

The survey provides evidence of potential harm, for example, potential harm that:

  • is related to lack of financial resilience and the use of expensive forms of credit
  • is linked to lack of engagement and knowledge when buying and managing financial products
  • is revealed through what consumers tell us about mis‑selling, unsolicited approaches that may be scams, personal security, and poor treatment by providers when in difficulty or when making a complaint

Financial Lives Survey

The Financial Lives Survey gathered responses from just under 13,000 UK consumers. The aim was to gather a unique understanding into people’s experiences of retail financial products and services received from financial advisers. The survey collects information about the financial products consumers use and their attitudes to managing their money.

The report tells the financial story for six different age groups to show key themes at each life stage, from those 18-24 to those 65 and over.

How can we help?

Here at Cooper Stern, we are experts at advising individuals and businesses on mis-sold complex financial products.
If you feel you have been mis-sold, please get in touch by calling 01204 328 287, or use our online enquiry form.