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‘EEA Life Settlements Fund investors should consider complaint’ - FCA

Thursday 25th September 2014

The Financial Conduct Authority (FCA) has warned those who invested in the EEA Life Settlements Fund to consider making a complaint to the firm they were advised by as they are likely to have been mis-sold the product.
 
In April 2012, an FCA review of sales in the TLPI market revealed high levels of unsuitable advice. The authority concluded that these products should not be reaching ordinary retail investors in the UK. 
 
This January, the FCA then imposed rules banning the promotion of TLPIs to most retail investors.
 
Danny Cox, Head of Financial Planning, at financial services firm Hargreaves Lansdown commented: “Investing to benefit from someone else’s death has never sat well with me. The complexities and potential risks of this type of fund meant they were totally unsuitable for anyone other than higher risk, sophisticated investors, yet it seems many were sold as a mass market product.” 
 
“Liquidity of the fund was always going to be an issue at some stage – whenever you have an open ended fund investing in illiquid assets, high redemptions will always cause problems for investors.” 
 
He argues that if it looks too good to be true, it almost always is.
 
Investors who were advised to invest in the fund and would like to make a complaint should contact the firm that arranged the investment on their behalf to raise concerns and ask for the sale to be reviewed. The FCA says investors should be clear that they are making a complaint.
 
If unsatisfied with the firm’s response, it has been advised to take up the complaint with the Financial Ombudsman Service
 
The FCA also stressed that there is only a limited time for investors to launch a complaint - the deadline may start to expire from 1 December 2014 onwards. 
 
However, the deadline is likely to vary and will depend on the facts and circumstances of each case – particularly when the sale or advice occurred and when the investor realised there was a problem.
 
There is more information on how to complain here.
 





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Editorial Contact Details - Conor Shilling
conor.shilling@angelsmedia.co.uk
0845 672 6000
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