EISs must explain themselves, says provider

John Williams, managing partner of Kuber Ventures, warned that because EIS funds are seen as specialist, adviser often steer clear.

He said: “The RDR deadline has come and gone and there still seems to be no public consensus among EIS fund managers about pricing policies. Furthermore, some financial advisers are in danger of avoiding offering EIS funds to their customers due to the uncertainty around the regulatory regime.

“Despite this, demand for EIS portfolios, which has seen strong growth in 2012, is expected to continue throughout the next twelve months. We are in no doubt that the EIS industry is RDR ready behind closed doors, but solutions are yet to be communicated.”

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A consultation by the FSA in August 2012 proposed that EIS and venture capital trusts should only be marketed to “sophisticated and high-net-worth individuals” as part of restrictions on unregulated collective investment schemes.

Stephen Tucker, managing director of national IFA firm, the Fry Group, said: “Providers need to wake up and figure out a way of offering advisers client-agreed remuneration.”