FSA must be clear on whether VCTs are Ucis, says IMA

The Investment Management Association has called on the FSA to confirm whether venture capital trusts will be included under its regime for Ucis products or not.

The IMA says the definition for non-mainstream pooled investment used by the regulator for Ucis products was “fairly broadly drawn”, but had not included VCT sister products investment trusts.

IMA senior adviser for retail distribution Andy Maysey says: “Given that these are broadly similar vehicles, albeit with different underlying investments.

“We find this apparent intention somewhat at odds with the purpose of the proposal. We would ask that the FSA confirm whether VCTs are, in fact, intended to be included.”

The asset manager trade body made the calls in its response to the FSA’s consultation paper on the ban of unauthorised collective investment schemes.

The Association of Investment Companies, the investment trust and VCT trade body, has lobbied the regulator to exclude the products from Ucis ban.

Research from Bestinvest earlier this year revealed VCTs could face a 75 per cent cut in funding if the ban was introduced.