Are unregulated investments ever a good idea?

Unregulated investments must have one of the worst reputations in financial services. Examples that spring to mind certainly do not paint a very positive picture; Harlequin Property, Stirling Mortimer, Armadillo Energy, Arck – investors who put money into these off-piste schemes are all now struggling to get their cash back, and in many cases are chasing the advisers who recommended them. The dangers associated with unregulated schemes are the reason the then-regulator, the Financial Services Authority, banned their promotion and marketing to retail investors earlier this year. Now...