It isn’t possible to regulate or legislate against dishonesty.
People’s actions will always reflect the underlying moral values that they have.
The selling of unsuitable, high risk and expensive unregulated collective investment plans seems set to continue.
The Financial Conduct Authority (FCA) has this week reported the banning and heavy fine imposed upon an adviser over the creation, promotion and selling of unregulated collective investment schemes investing in property in Croatia, Bulgaria and Montenegro.
Over 800 customers invested £30million in these schemes that later failed.
I have no doubt that we will be seeing further substantial claims against the Financial Services Compensation Scheme (FSCS) as a result of which there will be further demands on all advisers (the ones who didn’t recommend this pile of rubbish!) to cough up levy payments to the FSCS.
WARNING: Do not invest in unregulated collective investment schemes.
There are plenty of suitable regulated collective investment schemes for your investment and pensions portfolio.
Challenge anyone who advises such an investment and walk away from their recommendations.
