# My FA got sued over GFC advice...



## princeplanet (30 September 2011)

... by several clients but only had limited insurance.... Since then they have "pheonixed" a couple of times. So, 4 years on from my own bad advice, I've been told I  myself_ can't_ sue because the company no longer technically exists! One of their directors left so only name changed but they are still in business. I tried the Slater and Gordon idea, but have been advised there is little hope.  My knowledge was that I have 6 years after the relevant event in which to sue. My case is quite strong with email evidence history to support my grievance.

I am still hundreds of thousands down compared to my ACTUAL   (hard earned!) contributions.  My life plans have been ruined, all because my FA did not withdraw to cash late '07 like I asked. When the market subsequently dropped over the next few months the advice was almost insistent that I continue to hold, which I did, reluctantly, ALL THE WAY DOWN.

I gave it a few years to recover, to no avail. Time to seek recompense. Who do I turn to? ASIC? ACCC? Someone/thing else? Please spare me the "it's your own fault for being greedy/ignorant etc etc". The clients who successfully settled had lost less under less dubious circumstances. The FA should be  liable - no doubt about it.

Any advice?


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## Julia (30 September 2011)

princeplanet said:


> I am still hundreds of thousands down compared to my ACTUAL   (hard earned!) contributions.  My life plans have been ruined, all because my FA did not withdraw to cash late '07 like I asked.



Do you have a written record of asking that your a/c be moved to cash at this stage?

Have you sought a legal opinion as to any possible options?


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## LifeChoices (30 September 2011)

A very sad story pp. I'm sorry but I don't have any advice for you, however you've reinforced a lesson I learnt a few years ago. 

A friend of mine suggested that I should see his FA around 10 years ago. The FA idiot suggested some pretty way out stuff that I should be doing, including taking out more loans. Coming out of the meeting I thought he was a waste of space and decided I'd just live and learn.

I made the mistake of going to a school reunion a couple of months back. Guess the occupation of the biggest dickwad in my class.


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## Garpal Gumnut (30 September 2011)

princeplanet said:


> ... by several clients but only had limited insurance.... Since then they have "pheonixed" a couple of times. So, 4 years on from my own bad advice, I've been told I  myself_ can't_ sue because the company no longer technically exists! One of their directors left so only name changed but they are still in business. I tried the Slater and Gordon idea, but have been advised there is little hope.  My knowledge was that I have 6 years after the relevant event in which to sue. My case is quite strong with email evidence history to support my grievance.
> 
> I am still hundreds of thousands down compared to my ACTUAL   (hard earned!) contributions.  My life plans have been ruined, all because my FA did not withdraw to cash late '07 like I asked. When the market subsequently dropped over the next few months the advice was almost insistent that I continue to hold, which I did, reluctantly, ALL THE WAY DOWN.
> 
> ...




You need legal advice mate.

There are over 618,000 posts on the thread below that attest to the dodginess of financial advisers.

https://www.aussiestockforums.com/forums/showthread.php?t=13176

You may be too late, or they may be too slippery to get your money back unfortunately. Give it a go anyway.

gg


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## princeplanet (1 October 2011)

Julia said:


> Do you have a written record of asking that your a/c be moved to cash at this stage?
> 
> Have you sought a legal opinion as to any possible options?




yes and yes. When I asked to move to cash in mid Dec all I got was an auto message saying that they were all on holidays til late Jn the following year ('08). Of course by then the downward spiral was under way. On there return the advice was to hold firm as pulling out would realise a loss.

As to the legal opinion , it was that it would be difficult to get blood from stone, but that I should consider going after the individual as opposed to the limited company. Also  to take it up with ASIC or another body....


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## princeplanet (3 October 2011)

So no other advice?. Is there another forum somewhere I may find helpful? Don't want to be a pain- it's just that I don't really know how to go about this....


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## RandR (3 October 2011)

princeplanet said:


> So no other advice?. Is there another forum somewhere I may find helpful? Don't want to be a pain- it's just that I don't really know how to go about this....





 ...



			
				Garpal Gumnut said:
			
		

> You need legal advice mate.





+1 to that. I know your seeking some answers to your questions here mate, but ultimately your situation is unique to you, you need independent legal advice from someone familiar with all of the details of your situation.

I would recommend calling/contacting the Financial Planners Acocciation today, enquiring with them about the matter and seeking advice from them upon the legal avenues available to you. 

The FPA may even be able to refer you to a legal person with good experience and knowledge of the particular industry. I guess it wouldnt hurt if you tried to make contact with people that have been through this experience before, and getting them to fill you in on what to expect. If you know any ex clients of Storm, they could be a good start for you. There may even be one or two on this forum on the storm thread.

Perhaps if you PM Sir Osisflower (a member of this forum) he might even be able to give you some advice. I believe he is a FA (and comes across as the good and honest sort).


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## Sir Osisofliver (3 October 2011)

RandR said:


> ...
> Perhaps if you PM *Sir Osisflower* (a member of this forum) he might even be able to give you some advice. I believe he is a FA (and comes across as the good and honest sort).




@ randR- You make me sound like a hippie 

prince planet,

Very sorry to hear of your losses. I concur with others that you will need to speak to legal representation, preferably one with experience in this area. I wish you good luck in your endeavours, but from what I am hearing it doesn't sound good. I would limit the risk of your legal expenses becoming an issue for you and seek legal representation on a no-win no-pay basis.  This will quickly let you know whether you have a chance to recover the money. Note the below is conjecture but I hope will give you areas to explore with your legal council.

From the sounds of it....
1) by being last in the queue there is no money left to be paid by the professional indemnity insurance. (The squeaky wheel gets the grease).
2) Where the insurance vested will be important.  Was there a policy on the FA or on the AFSL licence holder? Or *both?* It's quite possible that instead of suing the FA under his/her personal indemnity insurance you could sue the the AFSL licence holder for breaching ASIC guidelines (and if you have given a written instruction this *may* be the case.) Be aware that ASIC is somewhat toothless and can take an exceedingly long time to act.
3) You may try to go after the FA's personal assets. If the FA is smart, his/her personal assets will be locked away from legal liability with corporate structures that are separate from his/her business enterprise.  This will mean that those assets are unlikely to be able to be part of any settlement, because it would mean breaking those structures, (unlikley and expensive to try).
4) It sounds like a small operation (otherwise they wouldn't have left the office unattended for four weeks).

I'm sorry I can't give you much hope here. It seems that you have already been told there is little chance of success, so you will need to assess whether the expense of legal action is worth the risk of still further depleting your assets.  One ray of hope however is that no company likes bad press. *Especially the major shareholders.* Find out who they are (you can do this through an ASIC search) and write to them, letting them know that you are pissed off and looking for compensation. This *may* prompt them to open dialogue with you...although they are likley to try and fob you off. Prepare for this by downloading a copy of the legislation (You want the Corps act, but not the whole thing, only those parts that pertain to provision of financial advice.) Be persistent and good luck.

Cheers

Sir Osisofliver


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## Harleyquin (4 October 2011)

We were with Storm Financial and have a class action going.  I would read the Storm Financial Group thread as gg has suggested.  ASIC are certainly aware of all that has happened in the storm issue and they need to be aware of what has happened in your situation, which I might add is very similar to ours.  The storm group have a support group, are there enough of you affected to form a similar group, if not maybe contact someone from sicag and see if they can point you in the right direction. Hope this all helps.  Good luck.


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