Exclude VCTs from Ucis ban: AIC
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Ian Sayers, director general of the AIC, said the trade body was “working closely with the FSA” on the issue.
He said: “VCTs are listed investment companies overseen by an independent board and regulated by the listing rules and company law, in the same way that investment companies are.
“We will be calling on the FSA to exclude VCTs from the proposals, in the same way that investment trusts have been excluded.”
On 22 August the FSA published a consultation paper (CP12/19) proposing to ban the promotion of Ucis and similar funds to ordinary retail investors in the UK.
Investment trusts have been specifically excluded from the proposals but not VCTs, which would severely restrict the ability of VCTs to be promoted to retail investors.
If implemented, this means VCTs could only be promoted to sophisticated and high-net worth individuals.