Terri and Ross* made two separate investments totalling $12,500 of their money in two unlisted companies on the recommendation of the Securities Dealer. The couple were not experienced investors and were ineligible to invest in the securities offered to them.

They were not made aware that they were required to satisfy an investor eligibility assessment prior to investing in the securities on either occasion.

It has shaken their confidence in the finance sector but they were grateful they were able to seek compensation from the CSLR. 

"My financial advisor engaged a stockbroker to invest over $12,000 of our money in unlisted shares. He seemed well-established and trusted by my financial advisor.  

But the shares were never listed and we discovered that we had been conned by the stockbroker. We didn’t know what to do. We decided to lodge a claim with AFCA for a determination and were successful. 

 

When the stockbroker went into receivership we thought we’d lost our money however we found that we were eligible to make a claim with the CSLR.

 

We were lucky it wasn’t too much of our money. We have acquaintances who have been involved and they have lost their whole lifesavings. I hope they can make successful claims with CSLR too.

 

The whole experience made me distrustful of the industry and has put me off reinvesting using a stockbroker. Qualifying for compensation from the CSLR was brilliant and has in part restored my faith in the financial sector. "

*Name changed for privacy