Mr Smith invested into a Capital Guaranteed Bond but was disappointed when after six years he only got back his original investment and nothing more.
He had originally been contacted by Lloyds when the bank noticed he had paid in a cheque following a redundancy payout. His financial adviser told him there was no risk associated with the bond but that was not entirely correct. What the adviser failed to explain was that if shares performed badly Mr Smith may only get back what he put in. This meant that indirectly he had suffered a loss as he had forfeited any interest he may have accumulated by placing his money in a bank deposit account instead of the bond.
A detailed report highlighting a number of errors in the advice was sent to Lloyds and a payment of £1,210 was made to Mr Smith within four weeks.