The FSA is urging IFAs to carry out an urgent review of any advice they have given on unregulated collective investment schemes (UCIS) and make redress to customers if needed.
Its warning comes after a review of advice on UCIS found serious failings among firms, including in extreme cases pushing clients to re-mortgage their homes for extra cash to invest in the schemes. Some firms also did not set a limit on how much of a client's portfolio could be in UCISs, resulting in advisers recommending up to 100% of portfolios to be invested in the schemes. Six firms that have been promoting and recommending UCIS to customers are currently being investigated by the FSA's Enforcement and Financial Crime Division. The regulator is also discussing a number of other...
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