The FSA has published a Consultation Paper (CP12/19) setting out its proposals to ban the promotion of unregulated collective investment schemes (UCIS) and other similar products to ordinary retail investors.
The FSA is seeking to limit the number of ordinary investors that are wrongly advised to invest in UCIS, following work carried out which has revealed that the majority of UCIS promotions do not meet the FSA's requirements.
The consequence of the proposals in CP12/19 would mean that these types of products and promotions would only be available to financially sophisticated investors and high net worth individuals. CP12/19 introduces the concept of "non-mainstream pooled investments" designed to capture UCIS and those products which are thought to be similar to them.
The FSA is keen to receive feedback on its proposals from overseas regulators and the European Commission as many UCIS are operated from outside of the UK. The consultation period closes on 14 November.