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.
Questions, questions…
Paul Jay Compliance 2023, FCA, Periodic Review, PI, platform, training, vulnerable, Xplan
As a result of firms needing to implement Consumer Duty this year (and many still don’t appear to have their act together yet), there hasn’t been much output from the regulator in the latter half of 2023. That has changed. In recent weeks the FCA seems to have issued more paper than confetti at a […]