FSA investigation into sale of VCTs

The FSA is continuing to monitor the way VCT shares are sold to see whether there has been a change ...

The FSA is continuing to monitor the way VCT shares are sold to see whether there has been a change in the profile of investors. The sector has been revitalised by the introduction in April 2004 of 40% income tax rebate on purchases of new shares. This brought a slew of new vehicles and new money into the sector and, after contacting a sample of 15 firms, the regulator is concerned about whether the marketing materials are appropriate for this audience. In particular it believes there has been an increase in the proportion of VCTs sold without advice. Its actions will be announced in the au...