The Financial Conduct Authority (FCA) has announced a crackdown on IFAs who advise clients to take out ‘high-risk investments’.
With more and more pensioners and those nearing retirement falling victim to pension scams and financial mis-selling, the regulator has shared details regarding plans to protect those at risk of fraud.
A spokesperson for the FCA has said that concerns have been raised for consumers placed into ‘high-risk’ investments which are ‘unlikely to meet their savings or investment needs’.
Often, these investments have complex product structures, complicated investment strategies, or lengthy terms and features. The true terms and conditions of these investments are often poorly explained to consumers. In some cases, they’re brushed over completely, resulting in consumers investing in schemes they have no understanding of.
The FCA plans to carry out an investigation to identify the people most at risk while also assessing the authorisation process for advisors that sell such investments.
A spokesperson said: “We will also strengthen our authorisations gateway and supervision for firms that provide advice on high-risk and complex investments. This will ensure they improve their disclosure and reduce the risks of harm to retail investors.”
If you’ve fallen victim to a high risk investment scam or you’ve been mis-sold a pension, please get in touch with our team. We work tirelessly to help victims of pension mis-selling and investment fraud, doing everything we can to obtain financial redress for those affected.