Why VCTs shouldn't be classed as UCIS

Ever since the FSA announced proposals to ban the promotion of unregulated collective investment schemes (UCIS) and their “close substitutes” to what it terms as ordinary retail clients, questions have been raised as to whether venture capital trusts (VCTs) will be included within the restrictions. Although VCTs are not directly referenced in the FSA’s consultation paper on the subject, there is concern they may well be affected by falling within the FSA’s definition of “non-mainstream pooled investments”. Investment trusts, which share the same close-ended structure as VCTs, have been g...