VCT and EIS providers applaud FCA's Ucis decision (Fund Web)
Venture capital trust and enterprise investment scheme providers have welcomed the Financial Conduct Authority’s decision to exclude their products from the ban on the distribution of Ucis to retail investors.
In its final guidance on the promotion of unregulated collective investment schemes, the regulator concluded that VCTs and EIS, as well as exchange traded products and offshore investment companies, will not be caught up an a ban on promotion to most retail investors, unless they are structured as Ucis.
Association of Investment Companies director general Ian Sayers says: “We very much appreciate confirmation of the FCA’s policy intention to exclude VCTs and offshore investment companies from the marketing restrictions. This is important for the investment company sector and allows ordinary retail investors to continue to access the benefits of VCTs and offshore investment companies. We look forward to working with the FCA to make sure the rules deliver this policy intention.”
Puma chief executive David Kaye says: “Naturally, we welcome the FCA’s decision today not to restrict the distribution of VCTs as has been previously indicated by consultation CP12/19 ’Restrictions on the retail distribution of unregulated collective investment schemes and close substitutes’.
“VCT offers are well-understood and well-regulated – with all documentation given prior approval by the UK Licensing Authority; they have to be listed and their corporate governance structures and independent boards have to comply with the stringent listing rules for investment companies.
”We therefore agree with the FCA decision that VCTs should not be classified as unregulated collective investments schemes.”
See full article on the Fund Web website.