Jersey Regulator Warns On Unregulated Investments
by Jason Gorringe, Lowtax.net, London
29 June, 2016
Jersey's financial services regulator, the Jersey Financial Services Commission, has warned the public to be wary of unregulated investment opportunities.
The Commission said: "In the current prolonged low-interest rate environment, consumers with money to invest can be tempted by products which appear to offer a high rate of return Sometimes those products are described as 'investments', but the use of that word is not controlled by the Commission, and so its appearance in marketing material is no guarantee that there is regulatory oversight of their sale by the Commission."
"This is the case, for example, with many collectibles, such as stamps, coins and wine, the sale of which is generally not covered by financial regulation."
"It is also the case that firms can be regulated for some of their business activities, but not others. This might be because the Commission examines the firm's anti-money laundering controls, but has no role in looking at how a firm conducts its selling process, for example."
The Commission has urged investors to make sure any firm they deal with clearly explains whether any investment is covered by regulation, including any compensation scheme should an investment not work out.
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