UK Crack-down on Mis-sold Alternatives Supported by AAA
News from the UK that its financial regulator is to clamp down on the mis-selling of alternative
investments, has been welcomed by AAA.
Boston, MA, August 25, 2012 - News from the UK that its financial regulator is to clamp down on
the mis-selling of alternative investments, has been welcomed by Alternative Asset Analysis
The alternative investment advocacy group claims that the crack-down on the mis-selling of
products know as Unauthorised Collective Investment Schemes (UCIS). In the UK can only be a
good thing for the alternative market in general.
“We are pleased to see that more is being done to protect those opting for alternative
investments,” stated AAA’s analysis partner, Anthony Johnson.
“The more that can be done to stop unscrupulous businesses from putting the hard sell on
investors, the better the reputation of the valid industry players.”
The Financial Services Authority (FSA) in the UK claims that the market for UCIS, which are
products that are often worthless if the seller goes into administration, is worth around £2.5
billion. the funds invest is a wide variety of asset classes and when they are mis-sold, the
reputation of these asset classes can fall.
Many of these products are not based in the UK and are therefore not included under the Financial
Services Compensation Scheme, which reimburses investors should they lose cash because a
company or bank collapsing.
A statement from the FSA said it was taking action because “of the high levels of unsuitable
advice it has uncovered and the potential for customer detriment.
‘Examples include: pensioners being advised to invest all of their wealth in a single, illiquid UCIS
with a view to generating income; and a customer being advised to borrow money to invest in
UCIS and to service the debt with withdrawals from that investment.’
AAA advocates ethical and alternative investments, that are valid and sold the right way. Projects
such as the managed forestry fund offered by <a href='http://www.greenwood-
management.com/'>Greenwood Management</a>, for example, offer alternative investments
from as little as $10,000.
Alternative Asset Analysis
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Boston, MA 02109-1320