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        • Case work examples

This case work example describes a case we have acted upon. It is designed to help firms understand our analysis, the issues that may lead us to contact firms and the action that may result. It does not set any kind of precedent or guide about the action we may take on similar cases in the future.

Issue

The firm issued a promotion for a global unit trust. The promotion contained a standard risk warning, which was appropriate for the product. However, the promotion also noted that [irrespective of the risk warning] the fund aimed to generate above average returns over a prolonged period.

Our concern was that this constituted a qualification of the risk warning, which reduced the impact that the risk warning should have had.

Action taken

The firm agreed to immediately withdraw and amend the promotion.

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