Browse commonly mis-sold SIPP pension investments, or use the space below to search for a specific one
The investments listed above all have 2 things in common:
They are not regulated by the Financial Conduct Authority (FCA) – the watchdogs of the UK finance world, and many of them are based abroad or floated on foreign stock exchanges, meaning they may be more open to volatility, fraud and collapse.
If something was to go wrong with any of these investments (and in many cases, it has gone very wrong), then the investors in them may lose everything they invested.
Because these are FCA unregulated investments, the investments themselves are not protected by the FSCS.
You may hear or read these jargony-words when people talk about some of the investments above, and it can be difficult to know what they mean.
UCIS – Unregulated Collective Investment Scheme
These investments are not regulated by the FCA, and are considered high-risk. They are a type of non-standard investment.
Non Standard Investment
These investments are a little out of the ordinary, and may be unregulated, prone to volatility in price, and may have little tangibility.
An asset is an investment you have ownership of. If an investment is “liquid”, it means there is a vibrant market for it, meaning shares in the investment can be bought and sold easily.
Illiquid is the opposite, and investing in an asset that is “prone to illiquidity” could mean that your money gets trapped there for a long period of time, or may drop in value, sometimes to nothing.
The selling of high-risk investments has a strict rule book.
FCA guidelines say that financial advisers must consider the suitability of the investments for the individual before recommending them or executing business.
Its obvious when you think about it – some people can afford to take the risk (high net worth individuals), and some can’t.
Other people have experience in this kind of investing, and understand what they’re getting into (Sophisticated Investors), and others don’t.
When financial advisers recommend high-risk investments to people with low-risk profiles, then they may be mis-selling those investments, and those people may be able to make a claim.
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