ARE YOU LOOKING AFTER YOUR OWN BEST INTERESTS?€¦ · ARE YOU LOOKING AFTER YOUR OWN BEST INTERESTS? 11959 JFSC DOOR DROP 3 A.indd 2-3 22/12/2016 15:45. INSET Avoid “putting all

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IS IT WORTH THE RISK?

The JFSC cannot by law provide advice on financial services products, providers or investments. Our role is to license and supervise local firms. If you have concerns about the conduct of an adviser or a company, you can contact the JFSC’s Investment Business team on (01534) 822100.

For more guidance and to check whether a firm or adviser is licensed please visit our website: www.jerseyfsc.org/yourownbestinterests #yourownbestinterests

If you rely on financial advice to make investment decisions, is the advice that you are receiving appropriate, reliable and from a credible source?

• Your investment choices must be well-informed and relative to your wealth and the level of risk that you are prepared to take – investments can go down as well as up

• You must ensure you fully understand the risks and rewards of the products on offer and your capacity for loss

• You should diversify your investments to help spread your risk. Putting all your money in one investment is highly risky

Reducing the risk to local investors and protecting Jersey’s reputation are key responsibilities for the Jersey Financial Services Commission (JFSC). It is impossible for us to prevent every single case

of investment mis-selling that affects Islanders, whether the adviser is licensed or not. If, however, a local adviser or company is found to be acting inappropriately we will deal with them accordingly.

By raising awareness, we hope to encourage local investors to reflect carefully on whether an investment recommendation is actually in their best interests.

EVERY INVESTMENT CARRIES RISKBy law we are not able to offer advice on individual financial investments, nor can we recommend financial advisers. By observing our guidelines, local investors should be better armed to make more informed choices with their money and investments.

ARE YOU LOOKING AFTER YOUR OWN BEST INTERESTS?

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INSET

Avoid “putting all your eggs in one

basket” – splitting your money between a few

investments could help to reduce potential losses

Be wary of promises of a high rate of return with apparently little or no risk. All investments carry some degree of risk. Greater returns mean greater risk

Always research the person and the company selling you the investment, even if you know them personally and believe them to be trustworthy. You may have developed a good relationship but regard this as a business transaction and always ask yourself whether they are acting in your best interests – not their own

Are the adviser, the company and the product regulated? Although this does not always guarantee consumer protection

Licensed advisers are required to fully assess your attitude to risk, capacity for loss and ensure solutions are suitable. Ask for evidence of these key points

Make sure you fully understand the proposed investment and how much you could potentially lose. Only invest if you are completely informed, know the risks and how returns are generated

Beware of putting money into “can’t miss”, “once in a lifetime” and “guaranteed return” opportunities or investments in which your adviser claims to have already invested their own money

Is there a choice of investments on offer or is your adviser just proposing a single product? And be wary if you are being invited to cash in an existing investment such as your pension

Consider what compensation may or may not be available should the investment fail or the company selling it become insolvent. Jersey does not have an investor compensation scheme. What would a total loss scenario mean for you?

Never be rushed; always be aware of pushy sales tactics. A professional adviser should never pressure you into making an immediate decision. If you are not given enough time, steer clear

Do not sign any investment/product agreements that you do not fully understand. Always read the small print and any supplementary documentation. There may be hidden terms and conditions. Take the paperwork away and read it in your own time. If you don’t understand something ask for help

You are the client - ask questions and make sure you get the answers so you are fully comfortable with your decision; how long will you be tied in for? Could you lose all your money?

Reflect, research and take advice. Consider talking to friends, family or a third party expert before you proceed. Perhaps have someone present when you meet with your adviser, particularly if you do not consider yourself an experienced investor

Do not be fooled by cleverly worded marketing material on websites and in brochures – it could be misleading

When considering ‘alternative investments’ (e.g. wine, coins, stamps) rather than traditional financial services products, always do your research and understand the associated risks. These products, and usually the companies that sell or advise on them, are not regulated by the JFSC

If you do invest, make sure you monitor the investment and ask for regular updates

It’s an old adage but if it sounds too good to be true, then it usually is

Remember it’s your money. Never be afraid or embarrassed to ask questions or complain

If you have concerns about your investments or the advice you have been given, in the first instance you should contact the provider which sold you the product(s).

If you are dissatisfied with the response then you may wish to contact the Channel Islands Financial Ombudsman www.ci-fo.org / 01534 748610 / [email protected]

To contact the JFSC, please see details on back cover.

THE MIS-SELLING OF INVESTMENTS IS OFTEN HARD TO SPOT

Investment mis-selling is a growing issue in Jersey. In recent years there have been a number of cases where Islanders have lost some or all of their life savings after investing in high risk products. These local investors did so seemingly without understanding or being appropriately advised of the potential dangers that they could lose their money.

Unlicensed advisers and scammers are an increasing concern in the Island but in some instances Jersey residents are making these high risk investments via licensed financial advisers. Often the professional is someone the investor knows and trusts.

While the majority of professional financial advisers give appropriate

and suitable advice which can be relied upon, Islanders need to be aware of the risks associated with seeking higher returns.

We have produced the following guidance to help Islanders protect themselves from investment mis-selling and poor advice.

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