Pension scammers are getting smarter, FCA warns advisers
The UK's Financial Conduct Authority (FCA) has warned financial advisers, DFMs and pension scheme operators that scammers are becoming increasingly sophisticated in developing products to defeat due diligence efforts.Scams have entered the next stage in their evolution, the regulator said. First-generation scams offered unregulated physical assets, such as commercial property, for direct investment. Second-generation scams obscured those underlying unregulated physical assets by creating a special purpose vehicles (SPV) to acquire them using funding raised by the issue of corporate bonds. Third-generation scams use the services of a discretionary fund manager (DFM) to create an investment portfolio that does not require the direct input of the investor. The portfolio then invests in an SPV. Please link to International Adviser to read the full article by Kirsten Hastings.