Mis-sold CFD Investments

Were you mis-sold a CFD Investment? Were you not aware of the high risks involved? You may be entitled to compensation.

Smooth Commercial Law are seeing an increase of complaints relating to CFDs. Investors are losing massive sums of money after being mis-sold a high risk investment by a financial advisor or organisation.

If you have been a victim of mis-selling, our expert team can provide you with guidance and advice, and potentially reclaim you a lump sum of your lost money.

What is a CFD?

A CFD is a Contract for Difference. It is a popular form of trading which offers traders and investors the opportunity to profit from price movement without owning the underlying asset.

A CFD investor will trade on the market as it happens, but unlike many investments, they will not have ownership of the product which the investment is for. This is a key difference, compared to investing in normal stocks and shares.

Essentially, it is the difference between owning a racehorse, and simply betting on it. CFD investments are the latter – a bet.

CFD funds can be invested in a number of ways. They can be invested directly through a CFD provider, and in some cases, they can be invested as part of pension, such as a SIPP (Self-Invested Personal Pension).

Why are CFDs High Risk?

Comparing CFDs to the above “betting” analogy, when you invest in CFDs you are essentially handing your money to a professional to make bets for you. This means your investment can go up or down.

You can often lose more money than you bet.

CFDs are also not regulated by the Financial Conduct Authority. The UK’s financial services watchdog does not have any authority over these transactions, meaning there is more potential for mistakes, misconduct, and mis-selling.

The high-risk nature of CFDs means that any potential investor should be knowledgeable and experienced within the market who understand the risks. They should also have the means to recover from any lost money.

However, due to the unregulated nature of CFD investments, many financial advisers wrongly advise vulnerable investors and encourage them to invest their retirements funds. These financial advisers are often telling their clients to do so in order to earn fees from the pension transfer.

This results in many financial advisers being liable for compensation claims for financial mis-selling.

How Smooth Commercial Law can help

If you have been advised to invest in a CFD investment without being told of the potential risk, you may be able to claim compensation. If you have invested through a SIPP, there is a high chance you may have lost money through negligent financial advice.

We are now seeing the Financial Services Compensation Scheme (FSCS) pay compensation to investors who were mis-sold CFD investments via their SIPP.

If you believe you have been mis-sold a CFD investment, it is important you receive expert legal advice immediately. Our team of experts can inform you whether you have a potential claim, and whether or not you are due compensation.

Smooth Commercial Law treat every CFD investment compensation claim with care and understand that each case is unique and sensitive to you.

Get in touch today by completing the enquiry form or calling the above number. One of our specialist CFD investment compensation claim solicitors will help you begin the process of reclaiming any money that is rightfully yours.