The Financial Services Authority has publicly accused Britain’s largest banks of selling businesses “absurdly complex products” and said that lenders will have to compensate thousands of customers.
In Jersey, this is no different and Sinels Advocates is currently dealing with a number of mis-selling cases against financial providers both in the Island and abroad.
Advocate Philip Sinel, said: “We are being instructed to advise in relation to financial products that were sold by some of the largest banks in Jersey, which has either resulted in substantially increased payments being made by our clients since the market collapse of 2008 or dramatic falls in trust values. In many cases this is through no fault of the client, but purely down to the greed of the banks.”
He continued: “Typically, we find that our clients were provided with little or no choice of investment products, that the banks have offered only their own in-house products even though they were uncompetitive in market terms, and that banks were selling products to clients apparently anticipating that the market would collapse and therefore saddling their clients with ever-escalating costs or underperforming trusts. Hidden commissions are another concern.”
He added: “This has been experienced by both individuals and trust companies in the island who are coming to us to review their client files, concerned that their clients are owed significant sums of money. Many small-to-medium local businesses have also suffered, which is particularly galling as it is they who go to the bank for help, trusting that they’ll be advised in the correct manner, only to find that banks have been providing them with misleading information and products to benefit their own bottom-line.”
Category: Finance & Business