Problems with your investments
When things go wrong
If your investments have fallen in value or your investment
company has become insolvent, you will be feeling anxious and
worried. The investment loss may be due to various factors, a fall
in the overall market, problems with one investment, poor advice or
breaches of the law.
Here we discuss what to do if:
Your investment value falls
If your investments have fallen in value, see keep track of your
If the company's accounts have large unexplained or unusual
expenses, it may be a sign of director
If you need to meet a margin call, see margin loans.
If you have an adviser, talk to them. See working
with an adviser.
Your investment company
If a company is insolvent it cannot pay its debts when they are
You should contact your investment company immediately if:
- They stop paying your interest payment
- They stop paying the distribution you expect to recieve
- You see something in the media about your investment company
going into administration or liquidation
The most recent prospectus or the product disclosure
statement (PDS) will have your investment company's
If you want to make a complaint to ASIC about a company that you
have invested in, use ASIC's online complaint form.
Will you get any money back?
Whether you will get any money back will depend on what type of
investment you have and the financial status of the company. For
example, if you own shares in the company, any money that is
recoverable will first go to the company's creditors and then to
For more information see ASIC's insolvency webpage.
If you have invested in a managed fund that has been frozen,
see check your withdrawal
Get legal advice
It's a good idea to get legal advice about your rights and
whether you are entitled to any compensation. The reasons for the
company's insolvency may include misconduct or a breach of the law,
and you might be able to be compensated.
Case study: Bill and Judy get some legal advice
Bill and Judy invested in a company which collapsed in 2009.
They heard that a class action was being run against the company
and they decided to join it. The lawyers running the class action
said that Bill and Judy would only have to pay their legal fees if
the class action failed. After a lengthy court case they were able
to recover some of their money.
You think you've been
Investment scams are often so professional, slick and believable
that it is hard to tell them apart from genuine investment
opportunities. The scammers set up a fake business and websites to
trick people out of their money. For more information see investment
You think you've been given
If you think the financial advice you've been given was
inappropriate then you have a right to complain. For more
information see working with an adviser.
When there are problems with your investments,
work out what your options are and if you can recover any money.
It's important that you focus on the future to get your finances
back on track.
Last updated: 04 Nov 2016