Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

FSA to U-turn on VCT sales ban

by Annabelle Williams on Feb 12, 2013 at 11:24

FSA to U-turn on VCT sales ban

The Financial Services Authority (FSA) is to reconsider plans that would have restricted the sale of venture capital trusts (VCTs) and other high risk investments.

In October, Wealth Manager revealed the FSA was to bring a vast swathe of VCTs and enterprise investment schemes (EIS) under upcoming rules on unregulated collective investment schemes (Ucis), designed to ban the sale and promotion of the product to ordinary retail investors.

Internal correspondence from the regulator showed that both VCTs and EIS would be brought under the banner of Ucis depending on their internal structure, but the move was branded ‘absolute nonsense’ by tax experts.

Now the FSA, which has been consulting on the matter since publishing consultation paper 12/19 last August, is now set to turn back, questioning whether the restrictions would allow ‘sufficient flexibility for firms with high net worth or sophisticated customers’.

The regulator is looking at 'refining' the marketing restriction as the rules gave rise to 'a number of concerns, said head of investments policy David Geale (pictured) in a letter to the Association of Investment Companies (AIC):

‘Following analysis of responses, we are currently considering amending our proposals to exclude the following investment vehicles from the scope of the new marketing restriction:

·         Venture capital trusts

·         Real estate investment trusts

·         Exchange traded products

·         Overseas investment companies that would meet the criteria for investment trust status if based in the UK

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

The Citywire guide to investment trusts

Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.

Investing for income in a changing environment

With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet