Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.

Unregulated investments are any products marketed as an investment but fall outside of traditional financial regulations. The ASA will assess these marketing communications and  they will be considered under the financial rules, Section 14, as well as the wider CAP Code. 

Types of unregulated investments 

There are many types of products that are advertised as investments, and the rules will apply to all of those that are not regulated. The ASA has recently issued rulings for unregulated investments in the following sectors– 

  • whisky cask  
  • gold (physical)  
  • wine 
  • land & property 

This is not an exhaustive list and there will be other items that may be advertised as investment opportunities which the rules will also apply to. 

Make clear that the value of the investment can go down as well as up 

Code rule 14.4 states that ads must make clear that the value of investments is variable and, unless guaranteed, can go down as well as up. Therefore, if an ad is for an investment, either explicitly or by implication, then rule 14.4 will apply,  

The ASA has investigated multiple ads for various investments that did not state that investments were variable and that they may go down in value as well as up, and told the advertisers to ensure that their ads included a statement which made this sufficiently clear.  

In 2023, the ASA investigated ads for investment in whisky casks, which stated “Invest your savings into a tangible asset that offers more financial security than stocks and shares”, among other claims. The ASA considered that the ads had omitted material information that cask whisky investments were not guaranteed, and the value could go down as well as up (Blackford Casks Ltd t/a Whisky Investment Partners, 23 August 2023). 

The ASA also upheld complaints about  two ads for land investments, which stated  “You Are Only ONE Land Deal Away From 6 Figure Profits”. These ads failed to make clear that investments could go down as well as up, and so were found to be misleading (Land Profits EDU Ltd t/a Land Profits, 12 February 2025). 

Make clear that past performance is not a guide for future performance 

Code rule 14.5 states that ads should make clear that past performance or experience does not necessarily give a guide for the future. Therefore, if an advertiser uses examples of past performance in ads, rule 14.5 will apply and the examples should be representative and must make clear they do not necessarily give a guide to the future.  

An ad for gold investment that stated “Gold has averaged 11.5% per annum for the last 20 years” was seen to breach 14.5 because no such warning about past performance was in the ad or the landing page it linked to, and so the ASA considered the ad a breach of the Code (Solomon Global Ltd t/a Buy Bullion, 20 November 2024). 

In 2024, another ad featured the claim “Gold has historically held its value over time, making it a good hedge against inflation”. The landing page for the ad had included text that stated, “past performance is not a guide to future performance”, but this was located at the bottom of the page at the time the ad appeared and therefore the ASA concluded this was not sufficiently prominent (Aurum & Argenti Ltd t/a Bullion Club, bullionclub.co.uk, 20 November 2024). 

Include all material information 

As well as the rules in Section 14 of the CAP Code, other sections of the Code will be relevant. The rules in Section 3 of the CAP Code cover misleading advertising. 

In line with rule 3.3, ads must not mislead consumers by omitting material information. Material information is defined as information that the consumer needs to make informed decisions in relation to a product. 

An ad for a gold investment included the claim “…could this be the best investment you've ever made?”, but did not make clear that the product was unregulated. The ASA considered that gold investment being an unregulated activity was material information. As  this was not included, the ad was misleading and breached the Code (Gold Warehouse Ltd t/a Gold Bank, 20 November 2024). 

 

Objective claims for financial returns should be accurate and capable of being substantiated 

Objective claims for financial returns should be accurate and capable of being substantiated in line with rules 3.1 and 3.7. An ad for a wine investment claimed wine had historically returned 13.6 percent annually in the past 15 years. While the advertiser had claimed to have taken the figure from a reputable global marketplace for tracking wines prices, they had not provided any evidence to support the figure. Therefore, the ASA considered they had not received sufficient evidence to support the claim and concluded that it had not been substantiated, (Cult & Boutique (Wine Management) Ltd, 13 November 2024). 

Also, objective claims generally should be substantiated and truthful. A social media ad for a wine investment claimed to have “proven tips for maximising returns on your fine wine collection”. The advertiser also provided figures from a global marketplace for wine prices showing that 1,000 specific wines had risen overall seven percent in five years to support the claim. The ASA noted however that within that five-year period wine had gone down as well as up. Because the ad stated their tips were “proven” and would assist “maximising returns”, the ASA understood the claim would be interpreted as stating that their recommended investments would always substantially increase. However, because the evidence showed returns were variable,  the ASA considered the claim had not been substantiated, (Vinverum Ltd, 13 November 2024). 

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