Editorial: 'Caveat emptor' needs teeth again

clock

The FSA's proposal to implement a tougher 'buyer beware' on 'wider range' retail investment products, such has hedge funds and split-capital investment trusts, resurrects questions about the current value of ‘caveat emptor'.

The concept of ‘buyer beware’ has always been present in the financial services industry but many intermediaries would argue its strength and meaning has been watered down so severely consumers are now able to argue they didn’t know what they were signing up to, even when they have anecdotal evidence to prove they knew EXACTLY what they were investing in. Discussions with intermediaries frequently reveal cases where compensation has been paid to individuals when they claimed mis-selling because investment values fell and they were unhappy the investment had lost money. One such conver...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •