Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a685200
FCA’s Ucis battle was worth winning
by Daniel Grote on Jun 12, 2013 at 12:11
So, no more sex and violence. The regulator’s codename for unregulated collective investment schemes (Ucis) made its attitude towards the controversial products clearer than any discussion or consultation paper.
Now it has delivered on its long-stated intention to ban the sale of Ucis to retail clients. It is yet more evidence of the Financial Conduct Authority’s ‘shoot first, ask questions later’ approach, which had already began to take shape in the latter days of predecessor the Financial Services Authority.
By itself, the ban will not solve all the problems connected with Ucis. It does nothing to stop savers losing their money through a geared Romanian rural property fund, if they invest directly, because that is beyond the remit of the FCA. And just because an investor is sophisticated or high-net-worth, and so still allowed to be advised on Ucis, it does not mean the mis-selling risk would go away.
But the ban does help to address some of the problem, and should be welcomed. While arguments that it curtails adviser freedom have some validity, the dearth of affordable professional indemnity insurance and rocketing Financial Services Compensation Scheme levies have done little for adviser liberty. Both those trends have been directly, if partially, influenced by Ucis mis-selling, and if the ban serves to alleviate some of those pressures, it can only be a good thing.
News sponsored by:
@investecam_ukTweets by @investecam_uk
More about this article:
More from us
- A history of 'sex and violence': why the FCA banned Ucis
- FCA confirms ban on Ucis sales to retail clients
- Concerns over mis-selling are still rife following Ucis retail sales ban
- PI insurer vows to keep costs down for independent advisers
- FSCS pays out £550k on Honister claims
by Himanshu Singh on Dec 07, 2013 at 04:57