FSA seeks IFAs' clients over 'unsuitable' UCIS advice

The FSA said it is trying to contact customers of a Leicester-based IFA as it believes they may have been mis-sold unregulated collective investment schemes (UCIS) and structured products.

Following a sales review of Modi and Shah Services, the regulator said it found advisers had recommended these products without fully understanding how they work.

As a result of its probe, the FSA said the business is in the process of closing down.

It pointed out UCIS are complex investments which should only be proposed to certified high net worth or 'sophisticated' investors. Self-certified sophisticated investors and existing investors in UCIS can also be recommended the products.

The FSA said if clients are concerned about advice they received from Modi and Shah Services they should call the liquidator of the firm, Situl Raithatha, on 01166 299 4745 or email him HERE.

Additionally, it said they could consider getting their case reviewed by another financial adviser. It also pointed out investors may be able to claim compensation via the FSCS.