Fiji Island Financial Monetary Authority
These policies are sometimes referred to as ‘death bonds’ because investors try to buy rights to life insurance policies after the ‘death’ of the holder. After investigating the Traded Life Policy Investment Market, we have found many brokers giving unsound advice, thus leading investors to heavy losses. We have decided that brokers may no longer sell TLPIs on the retail market.
The FFMA has found that often TLPIs are appealing to the public because they are not bound to the performance of the stock market and may look strong, while other investments lag. The truth is that TLPIs are very high risk and we warn the public to be aware of the following facts.
Make sure that your broker can give a clear explanation of why you should invest in a TLPI, get a clear understanding of when you are expected to profit and how calculations are being made. In the event you feel that you made a mistake by investing in a TLPI speak with your broker and find a resolution. If you feel you have been misled and your broker will not resolve the issue, please contact the broker complaints department at the FFMA.
