The financial services authority (FSA), the industry regulator, has confirmed that it is turning its focus to the selling practices of providers and financial advisers to high yielding bond investments.
These are the type of investments that carry such headlines as "High Income Bond Paying 10% pa" etc. In these days of low inflation, low interest rates, low dividends and poor stockmarket returns, it is not surprising that people are attracted to such headlines.
Our view
As we repeatedly say to users, 'if it looks to good to be true - it probably is'. You must always read the small print with any contract that carries such headlines. There is probably something in there about not being guaranteed or loss or reduction of capital if certain levels are not guaranteed.
See our archived article "Does guaranteed mean guaranteed?"