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Managing my investments
Managing my investments

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4.3.6 Precipice bonds – mis-selling or mis-buying?

In an environment of lower investment returns, the high returns offered by precipice bonds were attractive to investors.

Arguably, even the most inexperienced investors should understand that there is a relationship between risk and return. High returns are usually associated with high risks. Investors should have been alive to this very simple fact of investment life when considering whether to invest in precipice bonds. The simple risk–return relationship is not rocket science!

The image is the logo of the Financial Ombudsman Service (FOS).
Figure 12 The Financial Ombudsman Service (FOS) deals with disputes between customers and financial firms.