Joan* is an elderly pensioner who endured a high degree of distress and inconvenience while trying to recover money from her personal financial adviser over a long period of time. The financial planner acted contrary to good industry practice when he borrowed money from Joan. He failed to prioritise her interests over his own.

After coming into her sister inheritance Joan’s adviser suggested she make a loan to him for $50,000. This loan was used by the financial adviser to purchase a cattle farm in Queensland.

He unconsciously abused his position as Joan’s trusted adviser when she was elderly and had little financial experience and did not provide any ongoing advice or review.

Joan is extremely grateful to the Compensation Scheme of Last Resort, as her successful claim will fund the care she now requires for her dementia.

Joan’s daughter talking on behalf of her Mum (who now has dementia)

 

"Mum didn’t appreciate the unethical nature of what her adviser was asking. She trusted him. When the loan was due to be repaid he kept extending the due date. The adviser was also charging a hefty monthly advisory fee without providing service for it whatsoever.  

 

When Mum could not contact the adviser about her tax return, alarm bells started to ring. He wouldn’t respond to our calls and she started to really worry about what was going on.  

 

The whole experience was extremely stressful for Mum. She was beside herself and felt foolish for believing the financial adviser. She was just an ordinary person who had worked hard all her life as a primary school teacher. He took advantage of her kind nature and generosity.  

 

The money has come at the right time, as Mum now has dementia and we need it to pay for her care. We are so grateful for the work of AFCA, ASIC and CSLR. They have all played a role in providing a safety net for Mum."

*Names changed for privacy