The FSA has advised investors in Connaught funds (Series 1 and 2), offered by Connaught Asset Management, to consider speaking with their financial adviser or stockbroker to ensure the investment is suitable.
It says the funds have been advertised as low risk and could be misleading to investors. The FSA says: "In the literature we have seen, the Connaught funds are described as ‘very low risk' and ‘low risk'. It makes comparisons between investing in them and putting your money in high street bank and building society accounts. We believe this is misleading." "Connaught's marketing material compares the returns on its funds with fixed-rate notice bank and building society accounts. However, customers need to be aware that these bank accounts have stronger investor protections should anyth...
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