Legal
UK Regulator Warns Advisors, Investors Over EEA Life Settlements Mis-Selling
The UK Financial Conduct Authority has warned that some investors in the EEA Life Settlements fund may have been mis-sold the product and is offering them the opportunity to make a complaint against the firm which sold it to them.
The Financial Conduct
Authority has warned that some investors in the EEA Life
Settlements fund may have been mis-sold the product and is
offering them the opportunity to make a complaint against the
firm which sold it to them.
In an alert, the regulator has also asked advisors to make sure
they have complied with the 2012 Financial Services Authority
issued guidance regarding the sale of traded life policy
investments and to re-examine sales in the fund.
“Action is important as we believe some investors may be
disadvantaged if firms have not already reviewed past sales. The
circumstances will be different for each investor, but some may
face a deadline on when to make complaints,” the FCA said.
The FCA said that if firms uncover problems with sales of
investments in the fund they should offer appropriate redress to
customers. Where significant mis-sales are discovered, firms
should also contact their supervisor at the FCA.
“If firms do not act on our guidance, they may be failing to pay
due regard to the interests of their customers or to treat them
fairly, which could lead to regulatory action,” the FCA said.
TLPIs are investments in life assurance policies, typically of US
citizens. In 2012, a review by the then Financial Services
Authority of the TLPI market revealed “high levels of unsuitable
advice”.
The regulator recommended that these products should not be sold
to ordinary retail investors in the UK and in January 2014
imposed rules banning their promotion.
The FCA pointed out that those wishing to make a complaint only
had a limited time in which to do so and in some this might start
to expire from 1 December 2014 onwards.