FSA warns on provident society investments

The societies, which cover a wide range of firms from large organisations, such as co-operatives, through to small ethical or community-based firms, often allow members to acquire ‘withdrawable' shares, worth up to £20,000. However, these shares cannot be bought or sold on the stock market, with only the societies repaying investors to buy them back. In an update to consumers, the FSA said the societies "do not offer the same level of protection as in some other firms" and therefore "may not be suitable as an investment or home for your savings". It also said the societies, althoug...