The Financial Services Authority (FSA) is to restrict the marketing of unregulated collective investment schemes (Ucis) to private investors, making it harder for financial advisers to promote investments such as traded life policy settlements, overseas property, fine wine, timber and some Enterprise Investment Schemes (EISs).
The regulator has already issued guidance against marketing traded life settlements and is now consulting on restricting marketing of a wider range of Ucis. These are already restricted in that you have to self-certify yourself as a high-net-worth or sophisticated investor to buy them.
The FSA is particularly concerned about traded life policy settlements, which invest in life insurance policies, usually of US citizens. Investors buy the right to the insurance payouts upon the death of the original policyholder, so are betting on when a particular set of US citizens will die. If these people live longer than anticipated the investment's returns may be negatively affected.