The AIC (Association of Investment Companies) has just released details of a communication they’ve had from the FSA confirmingthat they are reconsidering their proposal to restrict the distribution of Venture Capital Trusts (VCTs) and Offshore investment companies* to retail investors. A definitive conclusion on this matter is dependent on final approval by the FSA’s Board, but the AIC stated it is hopeful that “a change of policy approach excluding our members from the restrictions will be confirmed in due course”.
They continued
“this rethink follows a constructive process of engagement and the AIC is pleased that its concerns over the FSA proposals have been recognised”.
The FSA’s previous announcement that they would restrict distribution of VCT’s and offshore investment companies last August,had led to some uncertainty in the industry and with IFA’s & Discretionary managers, who are responsible for a very large part of the distribution of both VCTs and offshore funds.
The AIC has campaigned to remove the measures, an effort which now appears is about to produce a positive outcome for the industry.
*Investment companies encompass investment trusts that comply with the UK Government restrictions that enable them to callthemselves investment trusts, including being domiciled in the UK. It also covers investment funds or investment companies that choose not to comply with these restrictions but which are broadly similar in most other respects to investment trusts.
