Investor education
What Is an Unregulated Investment?
Unregulated investments sit outside mainstream financial protections. Here is what that means in practice for UK investors.
5 min read
An unregulated investment is one that is not covered by the regulatory framework that applies to mainstream retail financial products. That does not automatically make it fraudulent, but it does mean the protections investors often assume are in place may not apply.
In practice, this can mean there is no recourse to the Financial Ombudsman Service, no cover under the Financial Services Compensation Scheme, and limited independent oversight of how funds are held or used. Investors are frequently unaware of this distinction until something goes wrong.
Common examples include certain overseas property schemes, storage-pod and car-park style products, unlisted bonds and loan notes, and private schemes promoted directly to individuals.
If you have lost money in an arrangement of this type, the available routes to recovery differ from those for regulated products, and the right approach depends heavily on the facts.
This article is general information, not advice on your circumstances. Every matter is assessed individually on its own facts.
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