What is an Unregulated Investment?

Unregulated investments, also known as unregulated collective investment schemes (UCIS) are very high-risk financial products unsuitable for sale to retail clients. Although “unregulated” they must be registered and approved by the FCA. They can then only be sold by regulated persons to self-certified high-risk investors. However, this has rarely been enforced and the sale of unregulated products to anyone willing to buy them has and remains prolific.

Claims are made against IFA’s for promoting, arranging or transacting unregulated investment schemes involving or not involving a regulated product such as a SIPP or mortgage. Unregulated investment schemes cover a wide range of investments, however the focus has been and remains with off-plan property schemes given their abundance.

Obligations of an Adviser of Sales Person for Sales of Unregulated Investments

Some Key Obligations

How was this service mis-sold?