Investment fraud is one of the "the most damaging" aspects of financial crime, which "has reached epidemic proportions" with a growing number of investors scammed out of their savings, according to chair of the Financial Conduct Authority (FCA) Charles Randell.
The FCA has been the target of much criticism for its handling of a spate of high profile scams and inappropriately risky investment scandals, such as that of London Capital & Finance, but Randell said the regulator is now taking further action on investment fraud. Reports of investment scams have skyrocketed in recent years, driven primarily by pensions freedoms and the growth of online advertisements for "get-rich-quick" schemes. While the figure is uncertain, the Crime Survey for England and Wales puts the total volume of fraud affecting individuals at 3.8 million cases, around one...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
