Mis-sold Collective Investment Schemes
A collective investment scheme, also sometimes known as a pooled investment, is one to which many investors contribute.
A scheme manager will invest the pooled money in assets like stocks, bonds or property to try and generate returns as per the investment aims of the scheme.
The Financial Conduct Authority (FCA) has issued a warning about the “illegal sales” of highly risky, unregulated collective investment schemes to ordinary investors who may not even know they have been exposed.
As these opportunities are all unregulated it leaves investors open to mis-selling and potentially big losses. In these cases it is possible for customers to seek compensation and recoup some of their losses.