More regulation required in wine investment industry

A recent BBC investigation showed that nearly £100m has been scammed by bogus wine investment companies in the past four years. In addition over the past 2 years 50 wine investment companies have collapsed costing investors thousands. The market is currently un-regulated and the industry has been beset with firms looking to capitalise on buyers' ignorance by selling wine at inflated prices.

According to an article in The Independent, leading companies are looking to set up a regulatory body to ensure all firms comply with a new code of practice that should be in place by the autumn. Peter Shakeshaft, the founder of Vin-X is behind the new body and says he and other major players should have their wine stocks independently audited and offer guarantees on the legitimacy of the wine offered. If the code of practice is followed it could significantly reduce the risk of fraud and mis-selling.