Angry investors are planning legal action against the regulator in a bid to claw back losses they claim its predecessor caused when it branded their traded life settlement investments "toxic".
The case is being brought by the Action Group For Life Settlement Fund Investors, on behalf of those who invested EEA Life Settlements. Roughly 400 advisory firms recommended investments in second hand life policies via EEA, prompting around 2,700 mainly UK savers to invest nearly $900m. But when on 28 November 2011 the then regulator the Financial Services Authority branded traded life policy investments "high risk, toxic products that are generally unsuitable for the majority of UK retail investors and should therefore not be promoted to them", EEA's value went into freefall. The...
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