Do you understand your investment loans?

A Westpac financial adviser, Robert Tindall, provided negligent and misleading advice to Westpac Sunshine Coast customers Mark and Loretta Jamieson who did not understand their loans, the Queensland Court of Appeal has ruled.

In 2007 the Jamiesons acted on advice and borrowed $5 million to invest in a managed investment scheme and $600,000 to invest in shares, through a self-managed superannuation fund.

The Jamiesons suffered “significant losses” and the court awarded the Jamiesons more than $1 million.

Westpac understated the risk in the investment strategy said the court and did not explain the complex loan structure.

Source: Banking Day

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