Retiree Pam* was taken advantage of by a financial advisor who provided inappropriate personal financial advice that was not in her best interest. The advisor recommended she invest $164,000 in assets that were not aligned with her risk profile, and inappropriately recommended conflicted advice about a related investment. 

Pam qualified for compensation through the Compensation Scheme of Last Resort, which is restoring her faith in the financial services system.

"I thought the firm sounded conservative and knew what they were talking about. I had confidence in them that they had my best interests at heart. I was asked to invest over $160,000 of my SMSF in a product without any indication that it was too risky for my personal circumstances.

 

When I questioned them about it, because I thought it was too much money, they insisted it was fine for me. But then I saw it was losing value. I told them I was really worried, but they maintained it was fine. They just lied about everything.

 

I was contacting them endlessly and getting nowhere. They never seemed to want to sell, in fact they told me not to sell, even when it was dropping significantly in value. I didn’t know what to do. I am not a wealthy person and I’m a woman in my 70’s on my own.

 

I thought I was going to have a nervous breakdown and was prescribed medication by my GP. I couldn’t stop crying. Losing money like this changes people’s lives.

 

I am just eternally grateful the CSLR was created. I feel very very lucky I’ve got my money now. It has restored my trust in the system that I was able to get compensation."

*Name changed for privacy