Check that an investment is regulated, Neglect Assist urges

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Award-winning professional negligence solicitors Neglect Assist have welcomed a Supreme Court ruling that two overseas land and forestry investments should fall within the scope of FCA regulation.

ft-courts

Companies subject to FCA regulation must obey its rules on how investments are structured and promoted; for example, they must include risk warnings and cannot offer guarantees of high returns.

Neglect Assist director Tim Wixted welcomes the news, telling the Financial Times that: “Anyone has the right to complain to the FCA to say that a company are engaging in regulated activity while unauthorised, which is a criminal offence.

“Being a successful business person who can read a balance sheet upside down does not mean you will know the ins and outs of the hidden charges and other grey areas in a complex investment scheme,” he said.

Self-invested personal pensions (Sipps) are of particular concern, he said, highlighting that this form of retirement saving is often used by company directors.

“They generally assume that just because [the Sipp itself] is regulated and protected, this extends to the investments they put into it. It doesn’t. Check that the specific investment is regulated,” said Mr Wixted.

You can read the full article on the Financial Times website at:
http://www.ft.com/cms/s/0/d7ed3b54-3d13-11e5-bbd1-b37bc06f590c.html

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