Products And Investments Not Covered Under Fca

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There are some products and financial services offered in certain global sectors, which are not approved by FCA. People should ignore firms offering schemes in such areas such as wine, sustainable energy, precious metals, storage & parking lot, overseas investment in farms, hotels / holiday homes, student accommodation, overseas land & forestry, crypto currency, diamond etc. These come under unregulated investment products and are risky. Firms offering such unregulated schemes are not backed by government and the offers are not supported by consumer compensation schemes.

What are unregulated investment schemes?

The investment firm (especially, the firms which are not authorised by the UK government or the ones not present in the company register list) offering schemes in unregulated products and promising huge profits in such schemes can be a scammer. Mostly firms offering schemes related to unregulated products are not backed by government organizations and you will not get access to government website links through their website offering such schemes. If the government backed websites are not used for investment, one will not get compensation (via FOS or FSCS) on loss of money.

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Even, if you are buying the scheme through a regulated firm, there are rules related to unregulated investment (in the mentioned set of products), where the government will not provide compensation on loss. If you suffer a loss, you can report the matter to government, and your case will be referred to Corporate Complaints or Industrial Strategy departments or the police.

Scams of unregulated products

Investors will come through mails, seminars or exhibitions, and will pressurise you to invest in schemes that sound extraordinarily good. These offers are based overseas and the scammer claim to have an office in the UK prime city. Once the investment is made they close down the account and refuse to pay back returns.

How to prevent unauthorised product scams?

Do not attend to cold calls or fake investment offers. View the FCA Warning List to identify if the deal is coming through fraudsters. Check the company register to verify the status of the firm offering the deal. Find out more about the company, its directors and consumer reviews.

Seek financial advice from reputed firm or government – backed authorities and not from the experts suggested by the scammer.

Find information about such investment from government backed websites and see advisories at PIMFA.

If you have already invested in such scheme

Contact consumer helpline to find out what to do to prevent future loss. Report the matter with government authorities, or fill the report form. If you get calls from the firm again, get details of the scammers and help authorities find the fraudsters. Those who suspect they may get trapped into investing in such schemes, contact UK government consumer helpline number immediately.


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