What is a mis-sold ISA?

An ISA is mis-sold when a regulated adviser recommends a stocks and shares or Innovative Finance ISA whose investments don't suit your circumstances, or fails to explain the risks and charges. You can complain to the firm and then the Financial Ombudsman (up to £455,000), or claim from the FSCS (up to £85,000) if the firm has failed. Source: FCA COBS 9; Financial Ombudsman; FSCS.

Mis-sold ISAs

Mis-sold ISA Claims — Were You Advised Into a Stocks and Shares ISA That Wasn't Right for You?

An ISA is only a tax wrapper — what matters is what's inside it. If an adviser put your savings into investments that didn't suit you, you may be owed compensation.

Check My Claim — Free Do I Qualify?

£85,000

FSCS limit for investment claims against firms that failed after 1 April 2019

£455,000

Financial Ombudsman award limit for advice given from 1 April 2019

6 years

Usual time limit — or 3 years from when you found out

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Do I Have a Claim?

Signs Your ISA Was Mis-sold

You may have a strong case if any of the following apply:

You were advised to move cash savings into a stocks and shares ISA when you needed the money to stay safe or easy to access
You told the adviser you were a cautious investor, but the ISA was invested in higher-risk funds
You were close to retirement, or relying on the money, when you were advised to invest it
Nobody explained that the value could fall and you could get back less than you put in
You were not told about the charges, or ongoing advice fees took a large share of your returns
You were put into an Innovative Finance ISA or 'ISA-eligible' bond described as safe or capital-protected
You were advised to switch ISAs or funds repeatedly, paying new charges each time
The adviser did not ask about your finances, goals or attitude to risk before recommending the ISA

What Happened

An ISA (Individual Savings Account) is a tax-free wrapper, not an investment in itself. A cash ISA holds savings; a stocks and shares ISA holds investments such as funds and shares, whose value can go down as well as up; an Innovative Finance ISA holds peer-to-peer loans or bonds. Because the ISA name sounds safe and familiar, investment ISAs were sometimes recommended to people for whom the investments inside them were unsuitable — cautious savers moved out of cash, people who needed access to their money, or retirees put into higher-risk funds. Innovative Finance ISAs and 'ISA-eligible' mini-bonds were also promoted as low-risk when the lending behind them could be lost entirely.

Why You May Be Owed Compensation

When a regulated adviser recommends an investment, FCA rules (COBS 9) require them to make sure it suits your circumstances, knowledge and attitude to risk, and to explain the risks and charges clearly. If they did not, and you lost money as a result, you can complain to the firm and then to the Financial Ombudsman Service. If the firm has gone out of business, you may be able to claim from the FSCS. Poor performance on its own is not mis-selling — the question is whether the advice was suitable when it was given.

How Much Could I Claim?

Compensation aims to put you back in the position you would be in had you received suitable advice — usually by comparing what your money is worth now with what it would have been worth in a suitable alternative, such as the cash ISA or lower-risk investment you should have had. The Financial Ombudsman can award up to £455,000 for complaints referred from 1 April 2026 about advice given on or after 1 April 2019 (£205,000 for earlier advice). If the adviser has gone out of business, the FSCS can pay up to £85,000 per person, per firm, where the firm failed after 1 April 2019. Source: Financial Ombudsman; FSCS.

Who Is Liable?

Depending on your situation, you may have a claim against:

The financial adviser or firm that recommended the ISA — Responsible for making sure the investments inside the ISA suited you, and that the risks and charges were explained.
A bank or provider that advised you directly — For example, a bank adviser who recommended an ISA invested in the bank's own funds.
The FSCS — Where the firm that advised you has failed — up to £85,000 per person, per firm.

How to Claim

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2. We Investigate

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3. You Get Paid

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Mis-sold ISAs – Frequently Asked Questions

Can I claim because my stocks and shares ISA lost money?

Not on losses alone. Investments can fall in value even when the advice was right. You may have a claim if the ISA was unsuitable when it was recommended — for example, if you were a cautious saver put into higher-risk funds, or the risks and charges were not explained.

Can I claim if I chose the ISA myself, without advice?

Usually not. Mis-selling claims generally depend on a firm having advised you or recommended the product. If you bought an ISA without advice, you would normally need to show the firm misled you — for example with inaccurate information about the risks — so it is worth checking your paperwork.

Is an Innovative Finance ISA protected by the FSCS?

Generally not. An Innovative Finance ISA usually holds peer-to-peer loans or bonds, which the FSCS does not protect if the borrower fails. You may still have a claim if a regulated adviser recommended it as safe or a firm misdescribed the risks. If your ISA held a mini-bond, see our mini-bond claims page.

What if the firm that advised me has closed down?

If it was authorised by the FCA and the FSCS has declared it in default, you may be able to claim up to £85,000 per person, per firm (for firms that failed after 1 April 2019).

How long do I have to make an ISA claim?

Normally six years from the advice, or three years from when you realised (or should have realised) you had cause to complain, whichever is later. The Financial Ombudsman applies similar time limits, so don't delay if you think your ISA was unsuitable.

Do I need my old ISA paperwork?

It helps, but you don't need everything. Useful documents include the adviser's recommendation or suitability letter, the application form and your statements. We can request records from the firm on your behalf.

Further reading. See our full guides on time limits for mis-selling claims, how compensation is calculated, and what evidence helps your claim. Not sure which route applies? Compare the FSCS and the Financial Ombudsman, estimate your compensation, or read how No Win No Fee works.

Explore the Knowledge Hub

This claim sits inside the following knowledge centres — see every related topic, regulator source and in-depth guide.

Investments Knowledge Centre

Not sure whether you are still in time? Check if you can still claim — the 6-year limit is not always the end of it.

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