View more on these topics

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.”

Recommended

Birmingham Midshires – The HeartBeat Account (inserted 21/2/2000)

Type: Fixed-rate interest account tied to Bank of England base rate.Minimum-maximum investment: £1,000-£500,000.Interest rates: £1,000-£4,999 – 1% below base rate, £5,000-£9,999 – 0.5% below base rate, £10,000-£24,999 – 0.25% below base rate, £25,000-£49,9999 – equal to base rate, £50,000+ – 0.25% above base rate.Term: None.Offer period: Until further notice.Withdrawal penalties: 30 days&#39 notice.Tel: 0845 602 […]

Government attacked by pension funds leaders

Pension fund chiefs have attacked the Government over its ethical investment policy, claiming its may encourage animal rights extremists to attack pension fund managers.The National Association of Pension Funds sparked the row by claiming the Government was creating a climate for potential extremism by forcing pension funds to reveal the extent to which social, environmental […]

“Bricks and mortar” tracker launched

Abbey National is launching a new savings bond to track the value of house prices, allowing investors to capitalise on the continuing price boom.Investors in the House Price Growth Bond will get their initial investment back plus a return of 1.2 times the increase in Abbey&#39s UK house price index.Abbey says the product is suited […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment