Precipice bond ‘mis-selling’ pushes investors over the edge

News

UK investors are complaining to the Financial Ombudsman Service in record numbers over the mis-selling of high-income ‘precipice’ bonds. Chief ombudsman Walter Merrick has received over 1,000 complaints during the current financial year, up from 362 in 2001/02 – and predicts that the figure will rise to 2,500 in 2003/04.

“It seems investors were not suitably aware of the risks,” says Merrick. “Bonds are usually associated with savings – but check the small print of some high-income bonds and

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