VCTs and EISs to come under UCIS ban

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Venture capital trusts (VCTs) and enterprise investment schemes (EISs) are to fall under the Financial Services Authority's (FSA's) upcoming guidance on unregulated collective investments schemes (UCIS).

The proposals, outlined in a consultation paper in August, would restrict VCT and EIS sales to sophisticated investors, despite the government encouraging advisers to recommend the schemes to clients. Downing Street adviser Lord Young has been consulting industry bodies, including the Institute of Financial Planning (IFP), on ways to ease the regulatory burden on advisers. At a meeting earlier this month, IFP CEO Nick Cann said members were concerned about retrospective regulation from the FSA, as well as the upcoming UCIS paper. "The issues they are facing given the FSAs paper on ...

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