Reduced investment values

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Reduced investment values

Leo* asked his adviser to cash in all his investments and change them to $NZ. Leo was surprised to receive $6,000 less than the estimate of $282,198.35 his adviser had indicated. Leo said that the adviser had not transferred the money into $NZ after each transaction and, therefore, he lost money. The adviser said he thought he was being asked to arrange the sales of all the investments and then convert them into $NZ before paying it to Leo, as that was the standard procedure.

There were delays in cashing in the investments, as Leo had not completed the documentation correctly. Many of the investments sold for less than the adviser’s estimate. This, together with a worse exchange rate, was the main reason for the reduced value of the investments.

The adviser followed the standard procedure for cashing the investments by arranging the sale of all the investments and then converting them into $NZD before paying the money to Leo. The adviser met all his legal obligations to Leo.

Complaint not upheld.

*Names have been changed.

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