Angry investors are planning legal action against the regulator in a bid to claw back losses they claim its predecessor caused when it branded their traded life settlement investments "toxic".
The case is being brought by the Action Group For Life Settlement Fund Investors, on behalf of those who invested in EEA Life Settlements. Roughly 400 advisory firms recommended investments in second hand life policies via EEA, prompting around 2,700 mainly UK savers to invest nearly $900m. But when on 28 November 2011 the then regulator the Financial Services Authority branded traded life policy investments "high risk, toxic products that are generally unsuitable for the majority of UK retail investors and should therefore not be promoted to them", EEA's value went into freefall. ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
