ABSOLUTE return funds, income drawdown plans and structured bonds – they all sound too good to be true, and the facts is they very well may be.
The UK regulator has published its annual list of the financial products it thinks pose the greatest risk to consumers in the year ahead and there are marked warnings about the products listed below, plus a host of others – from cheap insurance deals to company pension transfers.
The Financial Services Authority (FSA) said that while consumers were struggling to cope with falling investment returns and low interest rates, they remained at risk of being mis-sold unsuitable and excessively complex financial products.
This is because customers are more likely to be drawn to products that promise higher-than-average returns or offer to insulate customers from market falls – or both.
Here are the financial bogeymen according to the regulators. ABSOLUTE RETURN FUNDS