A British couple claimed to have lost £150,000 of their savings due to the negligent sale of investment products by a financial service provider which is registered in Malta.
As a result of this, a judicial protest was filed this morning in the First Hall of the Civil Court.
In the protest, Andrew and Jennifer Downing accused Hollingsworth International Financial Services Ltd – the financial service provider registered in Malta – of failing to act professionally in its duties under the EU Markets in Financial Instruments Directives and the Consumer Affairs Act.
It was said that a standard suitability test, carried out on Mr Downing, had been “superficial and late.” In the case of Mrs Downing, no suitability test had been carried out, even though investments were being made in both of their names.
Mr and Mrs Downing estimate that there “substantial” losses in both capital and interest are in excess of £150,000,
The couple argued that Hollingsworth had sold them high risk investments, adding that some had even been “speculative and illiquid.” The protest read however that the couple had instructed Hollingsworth to invest in low risk investments. The complexity of the products they were sold meant that the plaintiffs, who are inexperienced investors, failed to grasp the risks and underlying principles of the products recommended to them.
An appeal was made for the firm to liquidate and pay the damages suffered by Mr and Mrs Downing. They claimed that they endured losses due to the company’s “non-observance of the law, regulations currently in force and its duties.”