If you enjoy art, investing in it carries a certain appeal: why not make money from your knowledge and passion?
But the art market isn’t nearly as simple as some would have you believe.
In December, the Advertising Standards Authority (ASA) banned adverts from four art firms: Artscapy, Hartco Consultancy, Her Fine Art (Her Galleries Ltd) and Woodbury House.
All failed to make clear that art investments are unregulated, and that the value of investments can go up or down.
Hartco Consultancy and Her Fine Art also failed to make clear that the past performance of art pieces doesn’t necessarily provide a guide to the future. Her Fine Art stated in one advert: ‘This art print by Boogie [Moli] soared 257%, Acquired for £700 in 2023, Sold for £2,500 in 2025.’
Here, we explain why art is such a high-risk market, and how it can be difficult to know who you’re dealing with.
Investing’s wild west
No investment is risk-free, but some are far riskier than others. Art investments, along with those in cryptocurrencies, whiskey casks, storage units and parking spaces, are all unregulated.
This means providers are not accountable to the Financial Conduct Authority (FCA) in the same way as providers of traditional investment products (such as stocks and shares Isas).
If you’re mis-sold an unregulated investment, you can’t go to the Financial Ombudsman Service. Plus, your investments aren’t protected by the Financial Services Compensation Scheme if the company holding them goes bust.
With a regulated firm, you can check that its details match those on the FCA’s register, to avoid impersonation scams. But with unregulated firms, you’ll need to do your own research.
As we found, though, this is easier said than done.
- Find out more: how to start investing
Copy cat?
While some of the firms named by the ASA are relatively well established, Her Fine Art was only registered with Companies House in late 2024. A closer look at its website gave us further cause for concern.
Shadow Cat, a signed 1999 work by Canadian artist Richard Hambleton, was listed for sale with the price available on application. Yet an identical piece was for sale at $17,000 on the website of a New York brokerage, which says it’s a ‘unique work’ owned by a gallery in Arizona.
In the ‘Press’ section of Her Fine Art’s website, an article about US artist Jean-Michel Basquiat was copied and pasted in its entirety from the apparently unrelated website of another art broker.
The true author and source website were credited, albeit at the bottom, but it’s unclear whether permission was sought. Various other articles from different sources were reproduced word for word.
The ‘About’ page claims a ‘proven track record of success’ for this very new company.
Her Fine Art’s business address was also inconsistent. The site listed the contact address as a serviced shared office space in London’s Docklands, while the T&Cs, Facebook page and WhatsApp account listed an address in west London.
Her Fine Art responds
When we contacted Her Fine Art about our concerns, it replied: ‘As a young company, we acknowledge that some early marketing and website materials may not fully reflect the standards we aim to uphold.’
It added that it was reviewing all content to ensure ‘clarity, transparency, and compliance’, and highlighted site disclaimers stating that Her Fine Art doesn’t provide financial or investment advice, isn’t regulated by the FCA, and that art values can rise or fall.
It said: ‘We recognise the importance of making these messages clear and consistent across all materials.
‘Some of the language used on the website is promotional in nature, and reflects our ambition and positioning, rather than a long operating history. We also recognise that clarity around artwork availability and sourcing from third-party sellers is important.’
It confirmed that the Docklands address was correct, and the west London address was an old administrative address, which has now been removed.
- Find out more: The latest scam alerts from Which?
Still considering exotic investments?
If you’re still tempted by unregulated investments, the following tips can reduce – but not eliminate – your risk of being scammed:
- Speak to an FCA-authorised independent financial adviser before committing any funds. If you can’t afford this, seek free and impartial guidance instead.
- Never invest more than you can afford to lose.
- Promises of very high (for example 12%) returns, guaranteed returns or claims of zero risk are huge red flags. Walk away if you see them.
- Also avoid pushy sales techniques and ‘time limited’ opportunities; don’t be rushed.
- Do your homework on investment firms. Check the age of their website, read reviews and use the FCA Firm Checker to find any warnings about the firm.