View more on these topics

FCA delays Ucis paper to ‘get it right’

FCA-FSA-Building-Sky-Contrast-700x450jpg

The Financial Conduct Authority has confirmed its final rules on unregulated collective investment schemes have been delayed to allow the regulator extra time to “get it right”.

The regulator originally planned to publish its policy statement on Ucis and close substitutes in April but has pushed it back as it needs time to consider a number of “important issues”.

In a statement on its website the FCA says: “Further to discussions with stakeholders, there remain important issues for us to consider and our proposals were not submitted to the FCA board in April as originally planned.

“We are working towards publishing our final policy statement as soon as possible this year.”

The paper will outline if vehicles such as venture capital trusts, enterprise investment schemes and real estate investment trusts will fall under a ban on promoting Ucis products to ordinary retail investors.

The regulator considers Ucis to be too complex for the average retail investor and says they should only be promoted to more sophisticated investors.

The FCA says: “We remain committed to providing clarity for firms as soon as possible, but this is a complex area and it is important to allow the time to get it right.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. VCTs, EISs and REITs are complex products in the same vein as UCIS. They are not suitable for most retail clients. The reason for any discussion and hesitation is that they have vocal supporters and are politically sensitive.

    The question then is whether the FCA are going to do the right thing and categorise them for what they are or bow to pressure from vested interests and politicians.

    This simple test will confirm whether the FCA are independent and committed to proper regulation or whether it’s just the FSA re-incarnated…

  2. The FCA says: “We remain committed to providing clarity for firms as soon as possible, but this is a complex area and it is important to allow the time to get it right.” They are spot on to do this.

    If only their predecessors had done the same thing to ensure RDR was “got right” before launching it we may not have been in such a mess that does no good to anyone and has cost the industry billions with peknty more to come vizavee platform rebates et all.

  3. 4 years warning for RDR Marty!

    It was the industry that choose to stick its head in the sand along with HMRC.

  4. The FCA is the FSA re-branded. That is all. It is not new. They are still the same intellectual pygmies and lying windbags as before. It will prove to be as incompetent. Leopards – spots!

    For example – they still want to put 20% of SIPP operators out of business. They still want to delegate ‘functions’ to CRAPITA.

    We are all being stitched again as part of ‘regulation’ which has proved to be a complete con.

    Sad, but true!

  5. It is quite simple.

    All UCIS investments should carry a wealth warning stating that the investor has NO recourse to FSCS whether they have received advice or not and as such could lose all of their investment.

    Are we going to stop people taking out loans to set up a business next?

  6. If a client put 2% of their portfolio in a UCIS, is that a significant risk to them? If they put 20% in and had a 100k portfolio? If they had 2milllion of free assets, plus pension and home and 20% in a UCIS? I have never advised a client to use a UCIS, but most things fall under the heading of “common sense” surely?
    I have no clients where common sense would make a UCIS sensible even those who place their commercial property in their SIPP, they intended or had bought the property whether in or out with their pension, just in the pension was more tax efficient.

  7. RegulatorSaurusRex 21st May 2013 at 11:08 am

    “get it right”?

    I am extinct, it is impossible for me to get it right!

Leave a comment