The FCA published a warning on 1 April about how some firms are promoting Innovative Finance ISAs (IFISAs). The FCA has seen evidence that IFISAs are being promoted alongside cash ISAs.
This is problematic because investments held in IFISAs are generally high-risk. The money is ultimately invested in products like mini-bonds or peer-to-peer investments.
In addition, 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 it back because of liquidity issues.
FG 21/3 – client objectives
Alistair MacDougall Compliance Drawdown, FCA, ML, Pension, Pension Transfer, PI, transfer
Following on from our previous articles on FG21/3, we will look today at another of the interesting areas covered by the guidance. It goes without saying that the guidance itself is helpful, reiterating and emphasising previous rules and guidance and clarifying some areas that were arguably fuzzy before. However, as well as the actual content, […]