FCA building
The FCA has issued a rare public warning to investors to beware of unregulated holiday park investment schemes.
The regulator warned this week that a growing number of holiday park investment schemes are being promoted unlawfully and may well be high risk or even scams.
The watchdog says it has identified a rising number of investment schemes promoting investing in holiday lodges and holiday homes.
Some of these offers may be unregulated collective investment schemes which come with high risk, the FCA has warned.
The FCA said: “We've identified a growing number of investment schemes in holiday lodges and holiday homes being promoted to UK consumers by companies that are not FCA authorised.
“They may be unregulated collective investment schemes, where several investors invest their money. The schemes are being promoted unlawfully, are high risk and may even be scams.”
The regulator has warned consumers that investing in these schemes via an unauthorised company means they are unlikely to be protected if things go wrong. Consumers would be unable, for example, to take complaints to the Financial Ombudsman Service.
The FCA has advised consumers before investing to use the FCA Firm Checker to make sure a firm is authorised and has permission to provide the services required.
• FCA guidance on unregulated collective investment schemes.
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