Legal

UK Regulator Warns Advisors, Investors Over EEA Life Settlements Mis-Selling

Stephen Little Reporter London 25 September 2014

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.

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