Financial Conduct Authority urge 'death bond' investors to complain
1st October, 2014
City watchdog, the FCA, has said that those who invested in so-called 'death bonds' from a fund called EEA Life Settlements have probably been mis-sold to and should lodge an official complaint.
The investment fund, which is an unregulated collective investment scheme based in Guernsey, buys expiring life insurance policies - often from American citizens – and their money is made by betting on when a certain group of policyholders may die.
Earlier this year, chancellor George Osborne announced that UK retirees were free to withdraw from their pension pots, compare life insurance annuity quotes and find a better deal before they expire.
Those who purchased bonds did so either directly or through a financial advisor. The Financial Conduct Authority has called for consumers to put forward their grievance sooner rather than later as the deadline for complaints may start to expire as of December 1st this year.
In 2012, the industry watchdog warned that the investment was high risk and should not have been sold to ordinary investors or indeed the vast majority of investors in the UK. Those who wish to lodge a complaint are urged to do so either directly with the firm that sold the fund or as a claim against the firm in question. The Financial Services Compensation Scheme (FCSC) is there to help consumers who purchased bonds from a firm that has now gone out of business.