Discretionary portfolio managers were told to take note the regulator considers non-mainstream pooled investments are unlikely to be suitable for ordinary retail investors.
A discretionary manager should exercise particular care when placing ordinary retail investors’ money into these products, to satisfy him or herself that it is suitable for each particular client and is in the best interests of that client.
In a “true discretionary service” - where transactions can be made without the client’s prior approval - that “prior discussion of the investment will not amount to a promotion if that discussion does not amount to an invitation or inducement to invest”.
The rules will take effect from 1 January 2014.
http://www.fca.org.uk/your-fca/documents/policy-statements/ps13-03
