The European Commission (EC) is to consider creating an ombudsman to help expats in southern Spain reclaim against unregistered financial firms that may be exploiting them.
The move comes after a local pressure group, representing over 1,000 victims, sent a dossier of information to Brussels, reports the Telegraph.
The Costa del Sol Action Group demanded action against the advisers who, it claims, have lost their members over €120m (£102m).
"It is good news as something has to be done about this bunch of rogues," said group founder David Klein. "The current Spanish regulatory system is totally inadequate and ineffective."
Following receipt of the dossier, the EC confirmed it was to begin "a preliminary investigation of the problem".
It has asked for more information and the action group has called on all victims to write to the European Parliament outlining their experience.
The EC is also set to look into the official complaints procedure against independent advisers. At present there is no effective means for victims to make a complaint against unregistered product providers.
The group was highly critical of the local media for its willingness to accept adverts from unregulated financial firms in a bid to maximise advertising revenue.
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