FCA calls for mis-selling complaints on EEA Life Settlements fund

clock

The Financial Conduct Authority (FCA) has urged investors in the EEA Life Settlements fund who bought directly or via a financial adviser to consider making a complaint as it believes some are "likely to have been mis-sold the product".

The regulator is also asking advisers to make sure they complied with a Financial Services Authority request in 2012 to review their sales of traded life insurance policies (TLPIs).

That request followed a review of TLPI sales which revealed "high levels" of unsuitable advice. As a result, it recommended the products should not reach ordinary retail investors in the UK and, in January this year, the FCA banned the promotion of TLPIs to most retail customers.

The FCA is now asking advisers to re-examine their sales of the EEA Life Settlements fund, an unregulated collective investment scheme made up of TLPIs. In some cases they should offer redress. Where significant mis-sales are discovered, firms must also contact their supervisor at the FCA.

The FCA warned: "If firms do not act on our guidance, they may be failing to pay due regard to the interests of their customers or to treat them fairly, which could lead to regulatory action."

It has also urged investors to complain to the firm which sold them the investment before the deadline for claims expires from 1 December 2014. It told consumers: "The deadline will vary and will depend on the facts and circumstances of each case - particularly when the sale or advice occurred and when the investor realised there was a problem.

"Those who wish to complain should do so before it may be too late."

Investors may either make a complaint to the firm which sold the product or make a claim against it. If the firm has gone out of business, the FCA recommended contacting the Financial Services Compensation Scheme.

The EEA Life Settlements Fund is an unregulated collective investment scheme made up of TLPIs, typically of US citizens. It is based in Guernsey and previously listed on the Channel Islands Securities Exchange.

In the regulator's view, TLPIs are high-risk investments because they rely on calculating how long the policyholders will live, which is easy to get wrong. The asset class also has a lack of liquidity and extra complexity, due to the fact several firms in different countries are taking responsibility for different parts of the product. In January 2014, the FCA imposed rules banning the promotion of TLPIs to most retail investors.

More on Investment

Partner Insight: Atoms - Identifying structural long-term trends driving sustainable investing

Partner Insight: Atoms - Identifying structural long-term trends driving sustainable investing

In the first of three-part series, Sebastien Beguelin, Senior Fund Manager, looks at ’atoms’ – representing investments into the physical world – and how this long-term trend is represented in our sustainable fund range

Sebastien Beguelin, Senior Fund Manager, Royal London Asset Management
clock 18 August 2025 • 4 min read
Mondrian Investment Partners' Aileen Gan: Japanese equities offer compelling alternative to US

Mondrian Investment Partners' Aileen Gan: Japanese equities offer compelling alternative to US

'Resilient and attractively valued'

Aileen Gan
clock 14 August 2025 • 4 min read
UK investors back defence over AI for the rest of 2025

UK investors back defence over AI for the rest of 2025

British defence firms' shares rising in value

Patrick Brusnahan
clock 30 July 2025 • 1 min read
Trustpilot