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Unregulated collective investment scheme (UCIS)

A Unregulated Collective Investment Schemes (UCIS), is a financial product that’s not monitored by the Financial Conduct Authority (FCA).

A UCIS cannot be promoted to the UK public, however, they can be promoted to specific investors, so long as the investor meets specific criteria.

Unfortunately, some of these packages can be misrepresented and therefore mis-sold, which as a result, a substantial amount of money could be lost.

We may be able to help you if you think you’ve been mis-sold a NISA. You can contact us today for advice and guidance and we’ll be able to see if you have a claim to make and, if you do, advise how you can move forward.

Let’s take a look at Unregulated Collective Investment Schemes (UCIS).

 

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Unregulated collective investment schemes definition

An unregulated collective investment scheme involves a number of people collectively contributing to a fund. However, these schemes are not authorised by the Financial Conduct Authority (FCA) and don’t follow FCA criteria, which means they tend to be more open to high risk investments.

An unregulated collective scheme shouldn’t be promoted to the public, but the FCA has found evidence to suggest they have been, with members of the public being encouraged to invest in UCIS.

 

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Examples of unregulated collective investment schemes

Here are some examples of an unregulated collective investment schemes: fine wines, antique automobiles and carbon credits.

In other words, there may be no market to liquidate your holdings if the assets in question begin to perform poorly. Common UCIS schemes include standard investment funds and fractional ownership packages (which were quite common in the early 2000s).

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Fill in the form below and one of our team will be in touch for a free, friendly, no-obligation chat to assess your situation.

We’ll go through your options, your rights to making a claim and discuss how we can move forward. And don’t worry, this a free assessment and we don’t take any up-front costs.

Get Claims Advice are a claims management company. You can do the claim yourself directly to the adviser or pension company for no charge. You can also approach the Financial Ombudsman Service and Financial Services Compensation Scheme for free if you wish for them to review your case, providing you have approached the adviser or pension provider first, and it falls within their remit.

Considering an unregulated collective investment scheme? Here’s what you need to know

If you are considering an unregulated collective investment scheme (UCIS) it’s important to take a number of precautions before investing.

When speaking to an adviser about a UCIS, make sure you consider the following factors:

Clear information

Mis-selling can often occur when an adviser hasn’t been totally transparent in regards to the risks involved in an investment.

That’s why it’s important to thoroughly read, digest and understand all the available information about the investment and make sure the risks involved are clear.

And, in terms of returns, it’s best to know whether the return promised or estimated is based on an accurate rate as opposed to an unfounded target.

Additional charges

Most UCIS come with additional charges, so your adviser needs to be up-front about what those charges entail.

Protection

Not all unregulated collective investment schemes are protected by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS). This means if things go awry, you won’t have as much protection, so it’s really important to find out whether the schemes are protected in some way by these independent bodies.

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Can you make an unregulated collective investment scheme claim?

You can make a claim if your claim meets a certain criteria and it can be proved that the risks of the UCIS weren’t fully explained or suitable for you.

This can include the following circumstance:

  • Your financial position at the time of your initial investment wasn’t taken into account when making the recommendation.
  • You were guaranteed an ROI (return on investment)
  • The financial advisor did not carry out the necessary due diligence
  • Fees and commissions were never mentioned
  • You were pressured into making a decision
  • They transferred your SIPP into a UCIS
  • Did not make it clear that they are permitted to promote the scheme to you
  • The representative failed to address any of your concerns

We may be able to help you if you think you’ve been mis-sold an unregulated collective investment scheme claim. You can contact us today for advice and guidance and we’ll be able to see if you have a claim to make and, if you do, advise how you can move forward.
You can also go directly to the organisation who sold you the scheme or through the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS) if it falls in their remit.

 

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