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LONDON, April 29 (Reuters) – Investors may have to sit a test before they can buy high-risk financial products, Britain’s Financial Conduct Authority said on Thursday as it seeks to turn the tide on online scams and apply lessons from the costly collapse of investment fund London Capital & Finance.
“We are concerned that too often consumers are investing in high-risk investments they don’t understand and can lead to significant and unexpected losses,” Sheldon Mills, the FCA’s executive director for consumer and competition, said in a statement.
The FCA said it was proposing to create new categories of investments that would face restrictions on marketing, and further segmenting the high-risk investment market from safer investments.
The watchdog is looking at ways to make risk warnings more effective.