Problems with IFA investment company

A couple years ago I started investing with an invstment company. Recently I have learned that they mislead and lied to me about the service they where providing. I was wondering if anyone has experieced something similar with another IFA and has any thoughts on how to pursue this.


Thanks

If they are licensed by the SFC then you can and should file a complaint with the SFC.


If they are not licensed by the SFC (or are only licensed by the Insurance Commisioner) then you can and should file a complaint with the IC but it will probably be a waste of time.


If they are not based in Hong Kong at all then you have a more substantive problem.


You can also engage a firm of solicitors to write some nasty letters and if that does not produce the desired result, commence legal proceedings. This will be expensive and the burden of proof rests with you to show that they "misled and lied" to you and that your losses are a result of that.


General Note 1: in cases like this you have to be determined, persistant and patient to have much chance of getting any result. Make sure you build a paper trail of your efforts.


General Note 2: most of the IFAs in Hong Kong are not "independent". They generate their income from commissions on what they sell to their clients which creates an immediate and substantial conflict of interest. In most developed markets people should use a fee only financial adviser or learn to do it themselves.

Many thanks for the advice. It really helps to get as much information about what I can do as possible.


The company is not licensed with SFC, but they are with the Hong Kong CIB. I am not sure how effective a complaint will be with that regulating body but hopefully it will yield some results.


I am hoping not to get lawyers involved but it is good to know that it could be an option if the situation comes to it.


Do you know if it effective (or even legal) to discuss my situation in a public forum? Since their business is based on bringing in more small time investors, I thought about trying to get the word out with what they did to me. I am just not sure what the law is on slander in Hong Kong.


Thanks again

I'm not in a position to offer legal advice.....so please take this with a very large pinch of salt.


I would try to extract a settlement privately in the first instance. I would also go to the CIB as well. If that fails, then I would have no hesitation in going public. You would need to be a bit careful (i) not to say "pay up or I will go public" as that is close to blackmail - but you can give them advance notice of your intention to pursue the matter through other means and to let other investors know about your problems as you assume you are not an isolated case (ii) so long as what you say in public can be supported then it is not slander - the burden is on you. Careful phrasing of yoor complaint can usuall address this issue. For example: instead of saying that "they lied to me", you can say that you are very unhappy with the way the product was sold to you and do not feel that the sales person adequately explained the product. You can then go on about how you felt that the IFA had failed to address your complaints properly....You get the idea. It would also be legitimate to ask of other investors have had similar problems.


Just look at some of the allegations made regarding Lehman minibonds as an example.

I see what you are saying. I definitely don't want to get into any more trouble then I am already in. This is a situation where you need to keep your cool and phrase things in the most effective and precise way possible.


I really appreciate you taking the time to answer my questions. If there was any sort of karma or upvoting system with Asia X Pat you would have mine.


It is greatly appreciated