Blue Chip verdict highlights age-old problem
Widow Beryl Breeze is unlikely to see any of the $259,000 in costs and damages awarded by Justice Simon France after VPFS was put into liquidation and had not operated for nearly two years. Institute of Finance Advisers President Lyn McMorran said the case highlights a continuing problem for investors across all sectors.
"A client can go through the whole process and still come away with nothing," said McMorran. "It's not just limited to financial advisers, it's a problem for anybody with an investment."
Government regulation introducing dispute resolution services are unlikely to avoid these kinds of problems, as "people have assets in different entities." Ultimately, it is up to individual advisers who have to sign up to, and pay to be a part of, the services, McMorran said.
"It's hard to see how clients are going to avoid these issues with or without regulation," she said.
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