Factors affecting the quantum of compensation

An investor who helped an elderly relative to get 100% refund of a large investment in mini-bond wishes to share the following information:

Factors affecting the quantum of compensation:
1. Vulnerable
It seems like the definition of vulnerable is a combinition of following:
- age > 62 yrs old
- uneducated
- non-english speaking

2. Tranche of your minibond.

Different minibond series are invested in different combination of assets. Some tranches invest more in corporate bonds such as those issed by GE Capital, hence their underlying value are worth more and likely to worth more if held longer, when conditions of the captial market improves. In return for compensation, you need to transfer your rights of the minibond to the FIs, hence FIs are more willing to compensate more for those series with higher underlying value, especially the ealier tranches of minibond, as they will be able to benefit in future, if any.

3. Written Evidence.

As minibond is considered to have high risk profile, if you have written evidence that your risk profile is on the contrary (most if not all FIs need to do some form of needs analysis for you and there is a section on risk profile), then the chances of mis-selling is very high. On this basis alone, you have a high chance of winning under Common Law (i.e. sue the FI in court).

4. Customer-centric

Some FIs with progressive leadership team are more customer-centric and more willing to compensate on the basis of good will.

IN SUMMARY

Whether you get compensation and how much depends mainly on the interplay of the above four factors (although some other factors may also be relevant).