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FSA issues high income caution


The FSA is reminding consumers on the risks of high-income products amid fears they don&#39t fully understand them.


The regulator&#39s caution follows its own qualitative research of 40 investor interviews showing investors associate high risk with return and do not fully digest the small print.


The study also showed the charging structures of high income products are not fully understood.


FSA director of consumer relations Christine Farnish says: “We remain concerned many people still don&#39t understand charges may be deducted from their capital, rather than taken from their income.”

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