jackal2k10
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Supply of Goods&Services Act-Applicable to securities contracts supplied by brokers?!
Good morning everyone,
This might be seen as a very unusual question, and probably the first of its kind ever asked on here. Can the 'Supply of Goods & Services Act' be made applicable to the purchase/sale of securities contracts (let's say stocks, or derived products like cfds) through an advisory service supplied by a broker?
This Act categorically states that the product/service sold to a customer needs to be fit for purpose AND as described, otherwise the customer is entitled to a full refund. My account with one of my brokers (unlike my others) has been through a period of dreadful performance since only being open a couple of weeks ago, and I absolutely feel that this Act is applicable in this situation.
I was certainly advised that the products in question carry a high level of risk, but at no point in the risk warning was it mentioned that their advice could turn out to be completely unfit for purpose - for instance, last week I was advised to short a company that issued an 80% quarterly profit increase, when the overwhelming majority of other market participants used their common sense and went long, and unsurprisingly, my position was closed at a loss!
Does this type of advisory 'service' sound like a con? Judging by the fact that using advice of this standard has resulted in the unimaginably dreadful performance of my account at one of my brokers (unlike my others, who do outperform the markets). Surely this type of sloppy/cowboy type service is in some form of breach of some legislation out there? If not by the 'Supply of Goods & Services Act', then which legislation would cover this?
As you can deduce from my explanation, I was effectively sold 2 items - the first one being a product (the trading account itself, which I had the option to trade alone), and the second one being a service (Their advisory 'service'). Again I repeat, the risk warning only really warned about the highly volatile nature of the product, and not the service. In fact I was even told that their service adds value due to their highly defensive wealth preservation risk management strategies, which so far, is turning out to be a complete con.
Any comments please?!
I await your insightful replies, Thanks
Good morning everyone,
This might be seen as a very unusual question, and probably the first of its kind ever asked on here. Can the 'Supply of Goods & Services Act' be made applicable to the purchase/sale of securities contracts (let's say stocks, or derived products like cfds) through an advisory service supplied by a broker?
This Act categorically states that the product/service sold to a customer needs to be fit for purpose AND as described, otherwise the customer is entitled to a full refund. My account with one of my brokers (unlike my others) has been through a period of dreadful performance since only being open a couple of weeks ago, and I absolutely feel that this Act is applicable in this situation.
I was certainly advised that the products in question carry a high level of risk, but at no point in the risk warning was it mentioned that their advice could turn out to be completely unfit for purpose - for instance, last week I was advised to short a company that issued an 80% quarterly profit increase, when the overwhelming majority of other market participants used their common sense and went long, and unsurprisingly, my position was closed at a loss!
Does this type of advisory 'service' sound like a con? Judging by the fact that using advice of this standard has resulted in the unimaginably dreadful performance of my account at one of my brokers (unlike my others, who do outperform the markets). Surely this type of sloppy/cowboy type service is in some form of breach of some legislation out there? If not by the 'Supply of Goods & Services Act', then which legislation would cover this?
As you can deduce from my explanation, I was effectively sold 2 items - the first one being a product (the trading account itself, which I had the option to trade alone), and the second one being a service (Their advisory 'service'). Again I repeat, the risk warning only really warned about the highly volatile nature of the product, and not the service. In fact I was even told that their service adds value due to their highly defensive wealth preservation risk management strategies, which so far, is turning out to be a complete con.
Any comments please?!
I await your insightful replies, Thanks
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