Products and Investments not Covered Under Fca

Essay details

Please note! This essay has been submitted by a student.

Table of Contents

  • What Are Unregulated Investment Schemes?
  • Scams of Unregulated Products
  • How to Prevent Unauthorised Product Scams?
  • If You Have Already Invested in Such Scheme

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.

Essay due? We'll write it for you!

Any subject

Min. 3-hour delivery

Pay if satisfied

Get your price

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.

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.

Get quality help now


Verified writer

Proficient in: Finances, Marketing

4.9 (2552 reviews)
“She was able to compose a 3-4 page essay in less than 24 hours and the results were fantastic !! Ty so much and I'll be using her again ”

+75 relevant experts are online

More Essay Samples on Topic

banner clock
Clock is ticking and inspiration doesn't come?
We`ll do boring work for you. No plagiarism guarantee. Deadline from 3 hours.

We use cookies to offer you the best experience. By continuing, we’ll assume you agree with our Cookies policy.