Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • May 2016
05

FCA warns over-55s against investment scams

Open-access content 27th May 2016

The Financial Conduct Authority (FCA) has warned older people to take care when chasing higher rates of return on their savings through dubious investments.


31 MAY 2016 | MARK SMULIAN
Wine bottles investment

It has found that more than a quarter of those aged over 55 who fell victim to investment fraud were scammed by an unauthorised firm selling unregulated products, such as wine, diamonds and land.

An FCA study has discovered that low savings interest rates are one of the main reasons why older people consider unfamiliar types of investment products - most commonly as a result of unsolicited telephone calls.

The study formed part of the FCA's ScamSmart campaign, to help protect investors from fraud. It found 41% of respondents had moved money out of savings into riskier investments to try to get a better rate of return. Of those questioned, 26% invested in unregulated investment products and 23% considered doing so in future.

Among those who fell victim to investment fraud, 27% had bought an unregulated product through an unauthorised firm. The survey found 22% of retired people holding unregulated products had invested more in these over the last year than ever before. Those considering such investments said they would put in an average of over £4,000, with land, wine and art the most popular choices.

Despite the risks, 48% of those investing in unregulated products through unauthorised firms did not take professional advice or check information, such as the FCA's warning list.

FCA director of enforcement Mark Steward said: "You don't need to be gullible to lose money to a scam or fraud. Fraudsters target financially sophisticated people too, who often don't like to ask what might sound like silly or basic questions.

"If you are contacted out of the blue about an investment opportunity that sounds too good to be true then it probably is. We would urge you to be sceptical."

He urged anyone who has fallen victim to a scam to notify the FCA.

This article appeared in our May 2016 issue of The Actuary.
Click here to view this issue
Filed in:
05
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Longevity Actuary – Reinsurance

London (Central)
£100,000
Reference
118949

Senior Capital Actuary

London (Central)
£90000 - £110000 per annum + + bonus + benefits
Reference
118965

Capital Project Actuary

£500 - £850 per day
Reference
118964
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200