JFSC highlights growing investment mis-selling issue.
The Jersey Financial Services Commission (JFSC) has today launched an island-wide public awareness campaign to highlight the growing issue of investment mis-selling in Jersey.
The campaign, the first of its kind for the JFSC, comes in response to the increasing number of cases that the regulator has been dealing with where local investors have lost some or all of their life savings after making high risk investments. In most cases, the Islanders invested apparently without understanding or being appropriately advised of the potential dangers.
While the JFSC considers unauthorised advisers and scammers to be a growing concern in the Island, in some instances these high risk investments have been made via authorised financial advisers; often professionals who the investors knew and trusted.
The JFSC stresses that the majority of professional financial advisers in the Island give appropriate and suitable advice which can be relied upon. However the regulator is urging Islanders to be aware of the risks associated with seeking out higher returns and take responsibility for their investments.
John Harris, JFSC Director General commented:
“Reducing the risk to local investors and protecting Jersey’s reputation are key responsibilities for the JFSC and we care passionately that Islanders understand the potential risks as well as the opportunities of all investments. It is impossible for us to prevent every single case of investment mis-selling that affects Islanders, but we can raise awareness about the risks and ask investors to question whether an investment recommendation is actually in their best interests. As the responsibility for individual investment decisions ultimately rests with the investor, our intention is to provide Islanders with the guidance they need to protect their money”.
The Personal Finance Society (PFS), the professional body for the UK financial planning profession, is working in association with the JFSC on the campaign.
Keith Richards, Chief Executive Officer of the PFS, said:
“We are working in partnership with the JSFC on this key consumer awareness campaign to help people make better informed financial decisions. With interest rates so low, many investors feel under pressure to make their money work harder. But seeking higher returns can often increase the risk of loss. Coupled with a dramatic rise in sophisticated investment scams, it is essential for consumers to think carefully before committing to any investment opportunity and, where possible, seek professional financial advice.”
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