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Investment, Wealth Management and Financial Services

IFA IN IMPOSSIBLE POSITION.

April 2, 2014

Two elderly clients trapped in a suspended unregulated investment scheme have been offered an alternative Ucis fund by the company, but Martin Bamford has claimed this is unsuitable for them.

The managing director of Surrey-based Informed Choice said he had been put in an “impossible position” by tougher regulatory guidelines surrounding Ucis promotion.

Last week it was revealed Mr Bamford’s new clients had been advised by their former IFA to borrow £750,000 against their home to invest in the fund, which invests in US life settlement policies, or so-called ‘death bonds’.

But they were unable to redeem their money because in April 2013, MPL put a freeze on all investor redemptions to preserve the fund’s assets against a possible rush for the door, after the FCA warned that Ucis had the potential to be “toxic”.

Following Mr Bamford’s comments on 27 March, MPL announced it was setting up a switching facility to allow investors locked in the old fund to transfer into its Traded Life Policies Fund.

http://www.ftadviser.com/2014/04/02/investments/alternative-investments/ifa-powerless-to-help-trapped-couple-due-to-advice-rules-2FtMIA0vjcX1jNBVlzmbJP/article.html

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