Products and investments not covered under FCA

How To Avoid Investment In Unregulated Schemes?

Some collective schemes offered by the financial firms are considered unregulated, for which one cannot claim consumer compensation. These are not supported /authorised by the government and are not considered appropriate for individual investors in the UK, and the FCA has banned promotions/adverts related to such schemes. 

So, investors should be cautious with firms offering opportunities in wine, sustainable energy, storage units, overseas accommodations, or crypto. 

The firms based overseas that are not found in the company register list or those not backed by the local financial authorities are not supported by the government schemes, where in case of a scam, the victims will have to suffer a loss. 

However, even for unregulated assets, if you suffer, report the matter to the local regulatory agencies or the police, and your case can be referred to the industrial strategy department or corporate complaints. 

Most unregulated offers are sold through marketing campaigns where you get messages on emails or pamphlets at seminars or exhibitions. These options may be based overseas and difficult to trace, where once you pay all the money, they may close down the business and refuse to pay back your investments. 

How To Avert It?

Please do not answer cold calls from an unknown person who claims to be a representative or salesman and promises to deliver over 10 per cent returns through certain projects in return for your investment/pension money into their projects. 

If any such salesperson has contacted you, check the firm's registration number and status at the government websites and learn more about the directors, consumers and the organisation.  

Seek financial advice from a government-backed firm. If you suspect fraud, call the consumer helpline number to avoid losses and report the matter to government agencies. Also, fill in the online reporting forms. Further, inform and help authorities to trace the criminals.