Warning about non-regulated investments targeting Islanders
We are aware that Islanders may be approached about overseas investment opportunities, which do not fall under our financial regulation.
We are therefore warning local investors to be extra cautious if they are contacted by businesses or individuals selling unregulated investments, in particular in property and land.
We would encourage any Islander who is considering such an investment to get independent professional advice from a regulated financial adviser before investing to make sure they are fully aware of the potential risks.
Peter Krepski, our Enforcement division’s Senior Litigator commented:
“Last year we warned Islanders that in times of economic uncertainty, such as during the Covid-19 pandemic, we unfortunately see an increase in investment frauds and scams. We want all islanders to be well-informed, smart and safe when they make decisions about their money and their future.
It is critical that residents understand the potential risks, as well as the opportunities, involved in making investment decisions. We ask islanders to always question whether an investment recommendation is in their best interests and to remember that if something looks too good to be true, it usually is.”
We are issuing this warning under our statutory duty to seek to reduce the risk of financial loss to the investing public and recommend Islanders consider the following before parting with their money:
- Do not hesitate to ask more questions if you need more clarity and be sure to read the small print
- Only invest if you fully understand what you are investing in and what the risks are
- Consider what a significant loss of money would mean to you if the investment fails
- Do not be rushed; always be aware of pushy sales tactics
- Do appropriate checks on any opportunities and get professional advice
- Think carefully before you make any decisions with your money, as once you've transferred it to scammers it will be difficult, if not impossible, to recover.