The time it takes to recover from those stock losses can span a decade, even with dividends on top. The risk profile is totally different and yet with simple, sensible investing strategies shares would not be considered high-risk, but balanced-risk, by the right type of client.
The FCA could ensure that investors diversify more widely.
It could ensure that a much higher proportion of Ifisa investors are aware that they might not be able to sell their loans before the borrower has fully repaid them.
It could ensure that investors are informed about the default profile of the specific type of lending they are about to embark on through an Ifisa.
The industry will survive the FCA’s comment and all future knocks. And, in the end, even the FCA will not be able to ignore its record.
Neil Faulkner is chief executive of 4th Way