The Association of Policy Market Makers has defended unregulated collective investment schemes after an FSA warning over the products.
In early August, the FSA warned advisers that Ucis providers were using aggressive sales techniques to lure advisers into selling high-risk schemes, promoting assets such as golf courses in Mexico. It said advisers face regulatory action if they sell them to the wrong types of clients.
But the APMM says not all Ucis are high risk. It says many of its member firms offer funds that trade Teps and are usually registered as Ucis as investors can only sell out of their holdings once a month. Spokesman Steve Smith says: “Golf courses in Portugal are radically different from with-profits products which are provided by some of the securest financial institutions in the UK.”
He adds that UK Tep providers include Prudential, Standard Life, Aviva and Legal & General.