Spotting good advice
In addition to the tell-tale signs that the FCA has highlighted, it is prudent to be aware of what sound advice looks like. There are many factors that should be taken into consideration when selecting investments. Regardless of whether investors seek full advice or prefer to select their own holdings, risk is a key driver that determines the suitability of investment vehicles and underlying assets. Sound investment advice will consider an investor’s financial circumstances, drawing on their appetite for risk and wider objectives to determine the right solutions for achieving these. Should someone unfamiliar with your situation try to sell you an investment without trying to understand these factors, you should question the suitability of this for your short- or long-term objectives.
What you can do
- Reject unsolicited calls
- Get impartial investment advice to discuss the suitability of these investments, from a party that is not connected to the provider that contacted you
- If you suspect you have spoken to a fraudster, or recognise any of the above claims, check the FCA Warning List which details companies – or fraudulent ‘organisations’ that the FCA advices investors against
By investing in unregulated products through an unauthorised provider, you will be exempt from protection from the Financial Ombudsman Service or Financial Services Compensation Scheme, if things go wrong. The FCA research highlighted that despite this, nearly half (48%) of those investing in unregulated products through unauthorised firms do so without getting professional advice or checking publicly available investor information, such as the FCA’s Warning List.
Learn more about the FCA’s ScamSmart campaign
Learn more about Coutts wealth management advice approach