The industry regulator, the Financial Services Authority has begun investigating the selling practices of high street retailers, such as the banks and building societies.
Many investors have purchased so-called 'guaranteed' investments where the return of capital was linked to the performance of a stock market index. The FSA are worried that many of these investors will not see a return of their original capital.
Whilst these products are also sold by independent financial advisers, the FSA said that banks are far more likely to face enforcement action.
The Financial Ombudsman Service has already ordered Lloyds TSB to compensate one policyholder and there are many other complaints pending, with consumers not understanding the risks involved.
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