The FSA today warned firms promoting enterprise investment schemes (EISs) and venture capital trusts (VCTs) to beware marketing the products primarily on their tax incentives.
It said it was concerned investors did not fully understand the risks involved, and called on firms to make sure any tax benefits are presented in a "balanced" way. The warning comes the regulator said an increase in tax relief on EIS investments and, to a lesser degree, wider reforms of EISs and VCTs, is likely to result in increased demand for these products. "Firms must take responsibility for considering what risks should appear in their promotions and this will vary depending on the type of product and the benefits emphasised within the promotion," the FSA said in it latest Finan...
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