We use cookies to improve site performance and enhance your user experience. If you'd like to disable cookies on this device, please see our cookie management page.
If you close this message or continue to use this site, you consent to our use of cookies on this devise in accordance with our cookie policy, unless you disable them.

Close
In association with

Home > Training > Adviser Guides

Adviser Guides

Guide to FSA Ucis Ban Implications

Published by FTAdviser | Nov 29, 2012

In its August consultation paper 12/19, the FSA effectively said that advisers can no longer recommend unregistered collective investment schemes (Ucis) to ordinary retail investors, meaning they can only be marketed to wealthier, sophisticated investors.

As well as possible implications for Sipps providers, products such as more complex Enterprise Investment Schemes and Venture Capital Trust schemes may be covered under the scope of these rules, with the regulatory net thrown over a wider number of “non-mainstream pooled investments”.

So, what schemes come under the Ucis umbrella, should advisers avoid these products altogether (particularly with independence requirements under RDR), what should be done about existing Ucis investors, and what can advisers now recommend and to whom?

Answers provided by Judith Wright, compliance consultant at the Consulting Consortium, and Daniel Tunkel, financial regulation and funds partner at Howard Kennedy.

IN THIS GUIDE
  1. Q: What are unregulated collective investment schemes?

    Ucis are collective investment schemes which are not authorised and regulated in the UK but can still be sold here.

  2. Q: What schemes fall under the current definition of Ucis?

    The variety of investments that come under the Ucis definition is wide and there are regulatory changes afoot.

  3. Q: When can you recommend investing in Ucis?

    Promotion of Ucis to the general public in the UK is prohibited by statute and the exceptions are stringent.

  4. Q: What is the current regulatory environment?

    The FSA published its 12/19 consultation paper in August proposing to ban the promotion of Ucis and close substitutes to ordinary retail investors.

  5. Q: How would the pending regulation affect Ucis advice?

    The FSA’s consultation paper proposes restrictions on who you advise and on certain products.

  6. Q: What should I do about clients already invested in Ucis?

    In light of the anticipated regulatory adjustments, advisers may be concerned about clients who are existing Ucis investors.

  7. Q: Are my clients protected by the FSCS or Fos?

    The scheme itself is unlikely to be protected, although the operator might be at fault and be liable to the financial ombudsman.

Finished reading this article? Bank 1hr Structured CPD below.

The CPD Tracker is only available to registered FTAdviser users

CPD Sponsor Sponsored by

Q1.  Which ‘close substitutes’ are also covered by the FSA’s Ucis ban?

*Please select an answer

Q2.  According to Ms Wright, what are the most common exemptions to the Ucis ban for retail investors?

*Please select an answer

Q3.  What does Mr Tunkel suggest might be an unintended consequence of the Ucis retail ban?

*Please select an answer

Q4.  Which product type does Mr Tunkel state could be included in the ban due to the FSA omitting it from its exemptions?

*Please select an answer

Q5.  What does Ms Wright advise that IFAs should do in relation to historical sales to retail investors?

*Please select an answer

Q6.  Where can clients complain to get compensation if an overseas Ucis fails

*Please select an answer

You have answered all questions correctly. To bank your 1hr CPD minutes answer questions below.

These questions are required so that we can attribute against each piece of CPD learning an identified learning need that the content is meeting and a reflection statement on the learning undertaken. These are required elements for a piece of CPD to be considered as 'structured' under the new regime.

Why did you select this article as part of your CPD learning?

there's a limit of 500 characters

What have you learned from reading the article and completing the questions?

there's a limit of 500 characters

Submit

By submitting these answers I confirm that I have read and agreed to the terms and conditions.

Bank

Please add a brief statement in response to the above questions to bank CPD minutes.

By submitting these answers I confirm that I have read and agreed to the terms and conditions.

COMMENT AND REACTION
Most Popular
More on FTAdviser
FTA jobs