Hundreds of families in Australia are still waiting for compensations from businesses that have declared bankruptcy which and majority of it is to be blames on receiving bad financial advice. One of the victims is the couple Rob and Donna-Rose McAneney who were mandated to sell their house they have lived in for 17 years and resulted to them being penniless. This incident happened after they received a suspicious advice from Peter Spann who is a financial adviser in Australia under the company Freeman Fox.
They were regularly attending Mr. Spann’s public speaking engagement from the middle of the 2000s until the latter years where he was seen to have engaged with beginners in investing.
Ms. McAneney said that he was a very good sales person that it made them think that they were missing out on a great opportunity if they did not jump on it.
According to the advice given to them, they should invest about $500,000 with Macquarie Bank in order to purchase complicated structured products.
Mr. McAneney said that Peter told them that there is no chance for them to lose money. Tony Wheeler, a management consultant, was also advised to put in as much money as he can afford.
According to Mr. Wheeler, the product was presented by actual representatives from the Macquarie Bank and it was indicated to be safe with a low chance of volatility in either real estate or share market.
As soon as the financial crisis hit the country on a global scale, the safe products were not able to withstand the market and its value collapsed which resulted to a trap for the investors.
Mr. McAneney said that there was a lock in period and it was too late for them to do anything. They are devastated as they have invested everything they have, their resources and funds in order to sustain the products.
Mr. Wheeler said that he lost about $350,000 and he complained with the FOS or Financial Ombudsman Service. Due to the bad advice given by a financial adviser in Australia, FOS determined that he should be compensated with $137,000 but the sad news is that he is still waiting for the compensation along with the McAneneys and other victims.