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AS 2011: AIC welcomes relaxing of VCT rules

The Association of Investment Companies director general Ian Sayers says the Chancellor’s decision to remove the £1m investment limit on Venture Capital Trusts will reduce the amount of red tape in the sector.

In today’s autumn statement, Chancellor George Osborne announced plans to scrap the £1m limit that VCTs can invest in a single company over any 12 month period. The AIC says that rule has resulted in significant burdens for the VCT sector, such as preventing a VCT from offering all the funds a small company may require. It also means that a small company looking for £5m of investment would need to garner that from five VCTs rather than one.

Sayer says: ““The Chancellor’s decision to remove the £1million investment limit demonstrates his commitment to reducing red tape in the VCT sector. Making this change will significantly enhance the capacity of the sector to support entrepreneurial businesses. The impact of this change should not be underestimated – it could transform the VCT sector.

“The burden of agreeing investment terms with multiple funding partners significantly increases costs.  Removing this limit will mean individual VCTs can invest more efficiently, grow in size and secure economies of scale.  At the same time, SMEs will be more able to identify a one-stop-shop partner able to meet their funding needs.”


US unemployment falls

The US unemployment rate fell in November as 120,000 people found work during the month, but commentators warn this may not protect the country’s nascent recovery. According to the US Bureau of Labor Statistics, the unemployment rate dropped from 9 per cent in October to 8.6 per cent by the end of last month. Employment […]


AS: Balls slams ‘catastrophic errors’

Labour Shadow Chancellor Ed Balls has attacked the Chancellor’s autumn statement, saying it is a continuation of the “catastrophic” errors which have undermined efforts to balance Government finances. In the emergency Budget in June, Chancellor George Osborne set out plans to eliminate the structural deficit and reduce state debt as a proportion of Government income […]

Barclays told to review underwriting processes

The Information Commissioner has urged Barclays to review its underwriting practices after possible breaches of the Data Protection Act. Town & Country broker Dale Robinson complained to the IC  after one of his clients had her mortgage application rejected as a result of multiple unnecessary credit searches by Barclays. After she received her decision in […]


Ian McKenna looks at new IFA technology innovations

Implementing technology was always going to be a key part of how advisers adapt to the challenges of the RDR. Increasingly, innovative technologies are coming to market to help advisers address new challenges. For example, only a couple of months ago no-one had shown me any technology-based solutions to help advisers build and benchmark their […]


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