FD Legal helps client recover compensation

Financial Dispute Legal has successfully recovered compensation for a client in a claim against Octillion Partners. The claim alleged that a financial advisor provided bad financial advice which caused significant losses.

FD Legal helps client recover compensation

The Complaint alleged that:

In 2018, the complainants were advised to set up an SMSF and invest $340,000 in an unlisted unit trust known as the G Trust, which was presented as a fixed-term investment with guaranteed returns.
Over several years, the adviser failed to provide adequate information about the G Trust’s underlying assets or risks.
The adviser also became the nominee for one complainant’s Centrelink account but failed to provide required documentation, resulting in a year’s loss of pension payments.

The Australian Financial Complaints Authority (AFCA) Determination 12-00-1044694, AFCA held that:

The financial firm did not act in the best interests of the complainants. The SMSF was invested in a product with unknown risks and liquidity, contrary to their needs and objectives.
The adviser did not respond to Centrelink’s requests, causing the complainant to miss out on 12 months of pension entitlements.
If appropriate advice had been given, the SMSF would have been invested in a suitable fixed interest fund. The complainants were found to be $341,093.54 worse off due to the inappropriate advice, and $21,494.20 was lost in missed pension payments.

AFCA determined that the financial firm must pay $341,093.54 in compensation to the SMSF and $21,494.20 to the individual for missed pension payments.

If you are concerned with the advice you received from a financial advisor, we ask that you contact Financial Dispute Legal to discuss your circumstances and consider any rights to recover compensation on 1300 433 533 or enquiry@fdlegal.com.au

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