Commissions related to the sale of venture capital trusts (VCTs) and enterprise investment schemes (EIS) could be banned under plans being explored by the Financial Conduct Authority (FCA).
Brokers working in the alternative investment space have criticised the move, saying it would "harm customers" and reduce choice for investors. However at least one financial adviser said commission on alternative investments is "hard to defend". ‘Barrier to good outcomes' In its latest consultation paper, CP26/10 Simplifying the Pensions & Investment Advice Rules, the FCA highlights that "while commission is now rarely paid to execution-only brokers, we know that the practice remains more common in the case of certain alternative investments", including VCTs and EIS. The paper g...
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