The regulator says that as a result investors may wish to make a complaint to the firm which sold them the investment or make a claim against the firm.
The EEA Life Settlements Fund is an unregulated collective investment scheme made up of traded life insurance policies (TLPIs). It is based in Guernsey and was listed on the Channel Islands Securities Exchange.
The watchdog says that there will only be a limited time to make a complaint and in some cases the deadline for making complaints or claims may start to expire from 1 December 2014 onwards.
It adds that 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.
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An FCA spokesman said: "Those who wish to complain should do so before it may be too late."
In the first instance investors are being advised by the FCA to make a complaint to the firm that arranged the investment and ask for the sale to be reviewed. Those who invested direct without going through an adviser could consider bringing a claim through the courts. Later it is possible complaints may be investigated by the Financial Ombudsman Scheme of the Financial Services Compensation Scheme.
The FCA says that TLPIs are investments in life assurance policies, typically of US citizens. The regulator believes that TLPIs are complicated products generally unsuitable for the mass retail market.
In April 2012, it reviewed sales in the TLPI market and found high levels of unsuitable advice. It recommended that these products should not reach ordinary retail investors in the UK. In January 2014, it imposed rules banning the promotion of TLPIs to most retail investors.