An IFA has been fined £35k for failures relating to the promotion of unregulated collective investment schemes to clients. So when can (and can't) you recommend UCIS?
It is the latest enforcement action in an FSA clampdown on UCIS advice. Two partners at investment firm Clark Rees were banned and fined £28,000 in February. Section 238(1) of the Financial Services and Markets Act 2000 generally prohibits the promotion of UCIS by authorised firms. However, firms may promote UCIS to customers in certain circumstances where there is an exemption provided in the Promotion of Collective Investment Schemes (PCIS) Order 2001 and/or 4.12 of the COBS. This list is non-exhaustive. Exemptions under PCIS: UCIS may be promoted to persons defined as: ...
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