Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

IMA urges regulator to rethink its Ucis sales ban

IMA urges regulator to rethink its Ucis sales ban

The Investment Management Association (IMA) has urged the regulator to rethink its proposals on restricting the sale of unregulated collective investment schemes (Ucis).

As revealed by Wealth Manager last month, the Financial Services Authority (FSA) is pushing ahead with its plans to curb the retail distribution of some Ucis, despite industry opposition to the move.

The IMA, trade body for the investment and funds sector, has in part backed the FSA's plans but it feels the regulator has been too broad brushed in its definitions and its crackdown on Ucis as a whole.

'We welcome the FSA's proposals which are intended to protect consumers from the sale of unsuitable, high risk or otherwise inappropriate products that have been evidenced to cause consumer detriment.

'However, we are concerned the definition of non-mainstream pooled investments is too broadly drawn and would appear to capture investment vehicles that have very similar characteristics to those products that are, and will continue to be, widely available to retail consumers,' the IMA said.

'We would urge the FSA to re-consider and tighten up the definition.  Equally, we are concerned the FSA is adopting a broad brush policy of seeking to ban Ucis when, in our view, the FSA already has the tools to address these issues,' the trade body added.

The IMA's reaction to the Ucis proposals follows the Association of Investment Companies, which represents investment trusts and schemes like enterprise investment schemes and venture capital trusts (VCT), move to urge the FSA to rethink its plans, particularly those for VCT sales.

The IMA has submitted its views to the FSA as part of the regulator's consultation on its planned changes to Ucis sales.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter