Venture Capital Trusts (VCTs) are facing the prospect of a steep decline in fundraising if they are not granted an exemption from restrictions on the sales of unregulated collective investment schemes (UCIS).
Last month a consultation paper from the Financial Services Authority set out proposals to ban the promotion of UCIS and similar funds to "ordinary" retail investors in the UK. VCTs were not specifically mentioned in the proposals, though investment trusts were granted an exemption, suggesting providers of these products could face a ban on promoting them to retail investors. A survey of leading VCT managers, carried out by wealth manager Bestinvest, warns fundraising could collapse by 75% if VCTs are caught by the ban. Dan Tubb, head of VCTs at Bestinvest, said the VCT managers ...
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