After a consultation last year and lengthy consequential negotiations, the FCA have decided that Unregulated Collective Investment Schemes (UCIS) will only be open to sophisticated investors for retail investment and those who fulfil strict criteria. The new regulations will take effect in January 2014, but do not affect Venture Capital Trusts, Real Estate Investment Trusts, or Enterprise Investment Schemes.
The FCA are concerned that there have been massive problems with investments in these UCIS, leaving many unwary investors facing colossal losses of all their savings and investments in some cases.
The clampdown by the FCA is because of the increased number of both criminal and regulatory investigations of UCIS, e.g. land bank, wine, classic cars, and carbon credit.
Additionally, there has been a marked increase in complaints to the Financial Services Ombudsman by investors about these schemes and the IFAs who have recommended them.
If you are affected by any of these investigations or complaints, contact Jeffrey Lewis or Siobhain Egan who can advise you.
