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What do the new FCA regulations mean for investment companies?

New FCA regulation now states that before being offered certain types of unregulated investment opportunities individuals must self certify that they are either a ‘High Net Worth Individual’ a ‘Sophisticated Investor’ or and ‘Advised Client’ and that they are fully aware of the risks involved in these type of investments.

These new regulations were looked into soon after the 2008 financial crisis where literally thousands of people lost their money. For High Net Worth Individuals and Sophisticated Investors where investment is their business this wasn’t life changing but for Joe Blogs who sunk his pension or his life savings into a scheme that went down the pan it was disastrous.

Joe Blogs blames the investment company or the agent selling the investment whilst the investment company claimed the investor knew the risks, now to be fair in some cases the investor was told the risks but on occasion he wasn’t, unfortunately their was no way to prove this and no recourse either way.

After 2008 the FCA brought out regulations stating the investment company must only sell high risk or unregulated investments to those who could afford to lose their money, so self certification was born.

In recent month however the regulations have been updated and high risk, unregulated investments can now only be offered to people who qualify so as to avoid temptation of the novice investor who sees high returns and a fantastic income being offered

This has caused a number of serious problems for many investment firms and agents, some struggle with emailing out documents that they expect the client to print, sign, scan and return before giving out website passwords whilst others are ignoring the FCA regulations all together.

This has meant that the investment firms and agents wanting to stay on the right side of the law must use electronic signing or signatures or risk losing the investor to someone else. There are a number of eSignature websites around offering eSigning services although most require that the document is sent to the investor for signing and the investment firm or agent must then manually send back login or url’s again causing unnecessary delays.

However, eSignlite one of the UK’s most popular eSignture websites has launched fantastic addition just for this purpose where rather than just emailing out a document links member can create reusable document links that members can copy to their website or entry pages and once signed and submitted the signee is then automatically given logins and/or urls making the whole process automatic.

eSignlite is suitable for all types of businesses, with work with financial advisors, estate agents, internet marketing companies and a whole host of other businesses all praising our system for being both versatile and easy to use and it our versatility that has prompt companies selling and promoting investments to move over to eSignlite.

eSignlite are currently offering a FREE 289 day trial member so if your an investment company get over to esignlite.com now and sign up, no credit card required

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