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FSA: Ucis rules have been ignored or misapplied
by Alex Steger on Jul 03, 2012 at 08:43
Radical action around the sale of unregulated collective investment schemes (Ucis) may be necessary as the current rules governing their sale have been ‘misunderstood, ignored, or misapplied,’ according to the Financial Services Authority (FSA).
The FSA’s acting head of enforcement and financial crime Tracey McDermott, gave yet another indication that the regulator plans to clamp down on the retail sale of Ucis.
Speaking at the FSA’s enforcement conference McDermott (pictured) said the incoming regulator, the Financial Conduct Authority (FCA), would need product intervention powers with Ucis being an example of an area where such powers could improve regulation.
‘Ucis is a good example…there are already rules in place to prevent these products ending up in the wrong hands. But they have been widely misunderstood, ignored, or misapplied. So more radical action may be called for,’ she said.
McDermott said the FSA had served 20 supervisory or enforcement notices in relation to Ucis over the last two years after the regulator identified ‘widespread failure to comply with rules with the result that many consumers ended up with wholly unsuitable products.’
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