Marketing unregulated investments to individuals is restricted to high net worth and/or “sophisticated” investors. However, potential investors qualifying as such may not necessarily fully appreciate the risks associated with the investment.
When certain regulations on UK pension investments were
removed in 2015 by David Cameron”s administration, it encouraged
the growth of various unlisted, high-yield investment
offerings. Since the 2008 financial smash – and before –
regulators have tried to balance the need to protect retail
clients from making unsuitable and potentially mistaken
investments, without closing down lucrative
opportunities.
This article examines certain unregulated investments and
abuses of investors’ trust, and what clients and advisors should
do. The authors are from Kroll, the global risk
management and security consultants. They are Rob Goodhew,
director, restructuring advisory, Ben Boorer, associate managing
director for business intelligence and investigations, and
Patrick Crumplin, director, expert services. The editors of this
news service are pleased to share these views. The usual
editorial disclaimers apply. Email tom.burroughes@wealthbriefing.com
Unregulated investments, many of which are high-risk, not only in
the sense of the asset class but also potentially in terms of the
underlying assets, some of which are just outright scams, have
become a…
