08/01/2012
Wine Investors £250,000 in the Red!
Investing in wine can be a risky business, warn Warwickshire County
Council’s Trading Standards Service after consumers reported losing more than
£250,000!
Trading Standards Officers are aware of a number of investors who spent
over £250,000 each on ‘fine wine’ after being promised higher returns than
those available from savings accounts or the stock market.
Many of the investors were approached following a sales cold call or junk
mail leaflet.
Trading Standards Officers have discovered that huge commission fees
charged by the wine sellers swallowed up most of the investor’s investment
capital immediately. And, poor sales advice has meant that the wine they do now
own is unlikely to ever accrue in price enough to cover their initial
investment, never mind making a profit!
Fine wine is one of a number of ‘investment’ products which are
unregulated, so consumers are largely unprotected. Whilst not all unregulated
investment opportunities are misleading or fraudulent, investors are strongly
advised to seek impartial and professional advice to avoid unscrupulous
investment firms and bogus investments. Only deal with financial services firms
that are authorised by the UK’s Financial Services Authority: www.fsa.gov.uk
Please
feel free to cascade this information to whom-ever you feel appropriate
(including using the information in your newsletters/websites etc.).
To receive email alerts direct to your inbox, email: simoncripwell@warwickshire.gov.uk
For more information on scams, visit: www.warwickshire.gov.uk/scams
Follow us on twitter: www.twitter.com/warkstss
Simon Cripwell
Trading Standards Officer
Warwickshire Trading Standards Service
Communities
Warwickshire County Council
Old Budbrooke Road Warwick CV35 7DP
tel. 01926 414039
mob. 07771 975570
My normal working days are Monday to Thursday
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