The investor handed over several cheques for the purpose of investing in a fund chosen by a Unit Trust Consultant (UTC). However, the UTC used the cheques provided to make personal investments under their own name.

Once this was discovered, the UTC returned part of the amount handed over by the investor. The investor then claimed the remaining amount that had not been returned.

Our Findings

The adjudicator considered the following:

• The investor had previously handed money directly to another UTC.
• There was an established process, such as filling out an Investment Application Form as required by the FMOS Member in this case. However, the investor did not follow this process.

Outcome

In this case, the adjudicator ruled in favor of the investor. However, the awarded amount was less than the amount claimed, as the investor was deemed to have contributed to their own financial loss.