AIC challenges proposed ban on product promotion

RestrictedBritain's Association of Investment Companies (AIC) is calling regulators to exclude venture capital trusts (VCTs) from a proposed ban on promotions of certain products.

On 22 August, the Financial Services Authority published a consultation paper, Restrictions on the retail distribution of unregulated collective investment schemes [Ucis] and close substitutes.

The paper proposes to ban promotion of Ucis and similar funds, yet excludes investment trusts.

VCTs would be “severely restricted” in the way they could be promoted to investors other than sophisticated and high-net-worth individuals, the AIC said in an official statement.

Ian Sayers, director general, added: “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.”

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