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.
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 us. 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.
For more information please see the JFSC's your own best interests campaign.