About

THE MIS-SELLING OF INVESTMENTS IS OFTEN HARD TO SPOT

Investment mis-selling is a growing issue in Jersey. In recent years there have been a number of cases where Islanders have lost some or all of their life savings after investing in high risk products. These local investors did so seemingly without understanding or being appropriately advised of the potential dangers that they could lose their money.

Unlicensed advisers and scammers are an increasing concern in the Island but in some instances Jersey residents are making these high risk investments via licensed financial advisers. Often the professional is someone the investor knows and trusts.

While the majority of professional financial advisers give appropriate and suitable advice which can be relied upon, Islanders need to be aware of the risks associated with seeking higher returns.


ARE YOU LOOKING AFTER YOUR OWN BEST INTERESTS?

If you rely on financial advice to make investment decisions, is the advice that you are receiving appropriate, reliable and from a credible source

Your investment choices must be well-informed and relative to your wealth and the level of risk that you are prepared to take – investments can go down as well as up

You must ensure you fully understand the risks and rewards of the products on offer and your capacity for loss

You should diversify your investments to help spread the investment risks. Putting all your money in one investment is highly risky.

Reducing the risk to local investors and protecting Jersey’s reputation are key responsibilities for the Jersey Financial Services Commission (JFSC). It is impossible for us to prevent every single case of investment mis-selling that affects Islanders, whether the adviser is licensed or not. If, however, a local adviser or company is found to be acting inappropriately we will deal with them accordingly.

By raising awareness, we hope to encourage local investors to reflect carefully on whether an investment recommendation is actually in their best interests.


A NUMB3RS GAME

Although there have been a number of cases of investment mis-selling in Jersey, aggregate statistics are not yet available for the Island. However, the following have been published in the UK:

Figures from the Financial Conduct Authority (FCA) released in December 2016

"A fifth of over 55s and a third of over 75s believe they have been targeted by an investment scam in the last 3 years."

"55% of those who have invested in financial products did so on their own, rather than making the decision with family."

"£1.2 billion is lost to investment scams in the UK every year."

"One in eight of over 55s spend little or no time researching financial investment products before handing over money, rising to a quarter of over 75s."

Figures from Action Fraud released in October 2016

"On average, victims of investment fraud lost £32,000 each last year."