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Press comment: 'The true cost of investment scams is not only £197m'

If you are covering the FCA’s ScamSmart campaign and the warning that investment scams cost £197m last year, please see the following commentary from Jane Goodland, corporate affairs director at Quilter:

“People tend to read about scams and think, ‘that would never happen to me’. But with investment losses totaling £197 million, that clearly is not the case. In fact, to put the figure in context, the average loss to a scam of £29,000 is nearly five times the annual amount saved in a typical Isa, and the total lost is the equivalent of 70p for every £100 subscribed to a stocks and shares Isas*.

“In truth the real cost is not only the £197m lost by victims of fraud, but the untold amount of investment growth that potential investors forego because they fear being scammed or don’t feel able to discern legitimate investment opportunities from the fakes. Investment scams damage public trust in financial services as a result.

“For many people, telling the difference between a potential scam and a genuine, regulated investment can be really difficult. The power of technology has led to more sophisticated techniques meaning that even astute investors could find themselves a victim. Too few people are comfortable with personal finance basics and that means we are vulnerable to making poor choices, including falling for an investment scam. Improving levels of financial literacy through financial education in schools will help give consumers the confidence and knowledge to spot a scam themselves.

“It is up to the whole industry to do its part to root out financial scams and educate the public on how to avoid becoming a victim. By policing our industry and ensuring those that seek to abuse the system are reported, the financial services industry can help the public and help itself by reinforcing public confidence in legitimate investment companies.”

 

*The average Isa subscription in 2017-18 was £6,409 and a total of £28.7bn was subscribed to stocks and shares Isas, according to HMRC data.

 

For more information contact

Michael Glenister
0207 7789 638
07469 144 535
michael.glenister@quilterinvestors.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

  • The Multi-asset business is now Quilter Investors
  • Intrinsic to Quilter Financial Planning
  • The private client advisers business is now Quilter Private Client Advisers
  • The UK Platform to Quilter Wealth Solutions
  • The International business to Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

 

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.