OK, our regulator says they can’t or won’t ban dodgy (as opposed to fraudulent) investments. Surely, though, regulated advisers could be restricted to advising only on regulated products? That would exclude most bitcoins, holiday home developments in places you’ve never heard of and stuff offering a guaranteed return of 10% or more. Then, perhaps, caveat emptor would apply and those who do the right thing would not have to cough up to compensate the clients of those who couldn’t give a proverbial.
“Advisers fearful of further compliance and regulation”
We know, of course we know, that regulation is, or at least should be a ‘good thing’. If those who need or should seek advice can be confident that they’ll be told the right thing, that someone has looked at those ’too good to be true’ investments before they’re allowed to take your money; or, in the case of a Woodford, while they’re raking it in to make sure it’s going where it’s supposed to.
