FSA proposes ban on UCIS promotion to ordinary retail investors

In a consultation paper published today, the regulator said their promotion will generally be restricted to sophisticated investors and high net worth individuals for whom the products are more likely to be suitable. The FSA said that current rules allow UCIS to be promoted to ordinary retail investors if an adviser first assesses the product's suitability. However, it believes the new rules will prevent this happening, with a clarification in Handbook guidance that personal recommendations generally amount to a financial promotion. It added its own review had found that only one i...