In 2024 the Scotch Whisky Association (SWA) updated their Guidance on a “Personal Investment In A Scotch Whisky Cask.” The SWA is not responsible for the regulation of casks purchased privately, but as a prominent body in the industry it is good to see them providing a basic introduction for consumers.
Selectively Quoting The SWA
It is interesting to note that the main introduction to the updated information specifically states that “Anyone quoting this guidance should not do so selectively and should provide clear links back to this page.”
It is likely that this refers to the section from the previous guidance on delivery orders. Some cask investment companies had partially quoted the section in order to give the consumers the wrong advice about when a delivery order was not necessary. The full quote is:
“If the cask is located in a warehouse that belongs to someone other than the seller, you should ensure that the transfer of ownership is properly recorded and acknowledged by the warehousekeeper. Traditionally this was done by way of a delivery order, a document setting out the details of the cask to be transferred, signed by purchaser and seller and then delivered to the warehousekeeper. Nowadays other documents may suffice but you should check with the warehousekeeper what documents they require to record ownership in your name and ensure that the seller can deliver them to you before completing the purchase.”
However we have seen quotes that finish after “nowadays other documents may suffice.” By omitting the need to check with the warehousekeeper the meaning of the guidance is changed. The update makes clear that selective quotation that could be deemed to change meaning is not allowed.
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Cask Investment Fraud
Unfortunately cask investment fraud has brought the scotch whisky industry into the media for the wrong reasons in 2024. From the issues that caused the ASA to issue specific guidance for cask investment companies in January 2024, to the address in Scottish Parliament in April 2024 and the London City Police investigating a cask investment company, and the ones that have not made the news, there have been numerous issues to give cause for concern. The new PDF also includes a selection on cask investment fraud and how to report any fraudulent activity.
