FCA ISAs WarningToo Little Too Late

By J Drew -
In what will be considered extremely poor timing by the investors in LCF a warning has been posted on the FCA website to let people know that Innovative Finance ISAs are risky.

In a statement of the blindingly obvious to seasoned investors it is frustrating to see that it's taken them so long to act and publish such a bland statement.

Rather than posting a Press release on their website they should be ACTING and dealing with the companies that are using FCA authorisation to promote high risk products to consumers.

We have seen evidence that Innovative Finance ISAs (IFISAs) are being promoted alongside cash ISAs.
Investments held in IFISAs are high-risk with the money ultimately being invested in products like mini-bonds or peer-2-peer investments. 
These types of investments may not be protected by the Financial Service Compensation Scheme so customers may lose the money invested or find it hard to get back.
Anyone considering investing in an IFISA should carefully consider where their money is being invested before purchasing an IFISA.

https://www.fca.org.uk/news/news-stories/investing-innovative-finance-isas

Comments

  1. Anonymous6 April 2019 at 01:28

    "We have seen evidence that Innovative Finance ISAs (IFISAs) are being promoted alongside cash ISAs."
    ... for three years they've seen that !! And then publish a warning in a place that none of the people who need to see and understand such a warning will ever see it.

    As you say, why arent they directly shutting down these ads or even better the companies promoting these scams, rather than placing useless warnings about them?

    ReplyDelete

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