The Financial Services Authority has hit the "nuclear option" with its plans to ban the sales of unregulated collective investment schemes (UCIS) to most retail customers, according to a regulatory law expert.
Published on Wednesday, the FSA's proposals will ban the sales of the products to ‘ordinary' retail investors, taking away a number of loopholes the regulator said resulted in mis-selling by financial advisers. Although intermediaries will still be able to promote UCIS to certified sophisticated and high net worth investors, Jonathan Davies, consultant at law firm Reynolds Porter Chamberlain, has concerns about the path the FSA has taken. "These proposals are simply too heavy-handed," he said. "The FSA needs to find a way to deal with market problems in a more nuanced way, rather than...
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