Austen Morris Associates

The experience by the poster on the Friends Provident product is very similar to my own. I feel doubly betrayed because it was a friend of mine who was a senior partner at the firm who brought me in and recommended the product to me. I trusted him, and wanted to give him a little business, but frankly it was a mistake.

At the time, I made it clear to him that I had only an intention to put in an initial 90K USD (which was the min for the "initial units" to be discussed later) to see how things go before putting anything else in. But, he puts me into a Friends Provident Premier product, that I find out later is a "savings" plan, or something where basically, you are paying 1.5% per QUARTER commission on the initial units, adding up to 6% p.a. in fees. The product only works (maybe) if you intend to put in additional money beyond the 90K (where a commission would not apply), where then the 1.5% on the "initial units" gets watered down, perhaps to something more reasonable (if you put basically 4X as much money in).

This would be horrible even if the product helped you make a return. For the lack of liquidity, you'd expect better than VC returns (20-25% IRR), but instead the so called portfolio of funds that Friends Provident offers is exceedingly terrible. Because any fund worth their salt wouldn't need a scam like this to distribute. I checked the funds on the list and most of them are Morningstar 4th quartile, consistently horribly underperforming funds. You ask the FA why there isn't a better selection and they mumble something about the importance of asset allocation over fund track record, but grudgingly admit the lineup is sub-par.

So, AMA says its my fault I didn't read the details of the product description. I unfortunately trusted my friend and advisor to tell me what this was all about, and unfortunately, he didn't nor did he come close to matching me with a product that fit my stated investment objectives. What I found out later is that there is a Friends Provident product that would have been a much better fit for a "lump sum" investment like mine but that this savings product was pushed to me because AMA makes a much larger commission.

I also don't remember it being a 20 year plan, but here I am in year 8 of the 20 year journey to financial *** I find out later that the plan could have been as low as 5 years, or as high as 25. Naturally, the longer the plan, the more commission they make. At least they didn't stick me with the whole 25. Gee thanks AMA. My initial $90K is down to $82K which is ridiculously horrible given the bull run that has gone on since 2010. And I'm locked in. If I surrender (try to take my money out), I would only get something like $32K back, so basically I'm stuck. Although part of me wonders whether having $37K in cash right now would be better than continuously losing another 10-20K (or more) for the next 12 years given opportunity cost. The very concept of this product is criminal. Locked up for 20 years of illiquidity and a 6% p.a. charge! With no chance of VC-like returns (who only charge 2% and 20% carried interest). Ligitation isn't an option, given that lawyer fees would exceed the money I would get back.

The partner who sold me the product and brought me is long gone, and then I had 3 other Client Service managers, the second one who was someone I knew and who was decent, then he left. The other two I didn't know, and they haven't been that proactive in reaching out to me at all and frankly, I don't blame them - since there isn't anything they can do for me now. At least when I do talk to them, they kind of acknowledge what a bad situation I'm in, and I sense a little bit of sympathy, but there isn't much they can do. They also get that there's no more money from me given my horrendous experience, so why on earth would they want to spend any time to deal with me?

If you insist on working with these guys (because maybe they invited you to a Chi Fan for Charity event, and they look like ballers who take care of their clients) then at least I wouldn't trust anything they say and read the fine print of everything they push on you. Whatever they are selling you, they are probably pushing what they can make money on, not necessarily what is in your best interest.

https://www.ft.com/content/3d0178ee-fa4b-11e5-b3f6-11d5706b613b Read this FT article first as it explains exactly what happened to me. 4 years in Guangzhou was meant to set me up for the future instead I was scammed by this company.

The advisor who worked for them has had mental breakdowns which I strongly believe are due to his realisation of the pain and suffering he has brought to clients/friends who have been scammed. Austen Morris, DeVere, and all the other versions that pop-up around the world are a filled with some very very horrible and evil people.

I have since had my policy reviewed in the UK and the IFA who is regulated was shocked by what I have been sold. We are looking into Legal action but it will be difficult.