Were you advised to invest in a UCIS?
If you have experienced financial loss after being advised to invest in an unregulated scheme, it is very important that you speak to a legal expert with a track record in dealing with such complex cases. The team here at WE Solicitors have successfully represented a number of clients who have been involved in these schemes.
Unregulated collective investment schemes (UCIS) are high-risk investment products that are not regulated by the Financial Conduct Authority (FCA) in the same way as mainstream investments. They are often unsuitable for retail investors and should only be recommended in very limited circumstances. If they are sold having not been authorised by the FCA then they are illegal.
If you were advised to invest in a UCIS and have suffered losses, WE Solicitors can help you pursue a professional negligence or a mis-selling claim. This area of law is complex and you will need to speak to a solicitor with a proven track record in this area. David Wingate, partner here at WE Solicitors has the expertise required to deal with matters of such complexity.
For example, David Wingate represented a group of 30+ investors who had entered into contracts to purchase apartments at a development known as Fox Street Village in Liverpool. The investors commenced proceedings against two firms of conveyancing lawyers who had acted for the investors in the purchase. The case was eventually settled with compensation being paid to the investors.
What is a UCIS?
An unregulated collective investment scheme pools investors’ money into assets such as:
- Property developments
- Overseas land or hotel projects
- Forestry, storage units, or alternative assets
Because these schemes are unregulated, investors do not receive the same protections as they would with regulated investments. Losses are often substantial.
Why UCIS are high risk
UCIS investments are considered high risk because:
They are not FCA-regulated
They are often illiquid and difficult to exit. Illiquid means that assets or investments that cannot be quickly and easily converted into cash at the current fair market price.
Returns may be speculative or unrealistic
Investors may not receive clear or balanced risk warnings
