Offshore ITs and UK REITs could be caught by UCIS ban

The Association of Investment Companies (AIC) has warned offshore investment trusts and UK REITs could be under threat from FSA proposals to ban promotions of unregulated collective investment schemes (UCIS) to ordinary retail investors.

Some vehicles, including investment trusts which trade in liquid shares and securities, have been exempt from the proposed ban, revealed in an FSA consultation paper last August. Although not specifically mentioned in the paper, venture capital trusts (VCTs) have not been given immunity, which has led the British Private Equity and Venture Capital Association (BVCA) to lobby the Treasury over the FSA’s proposals. The AIC has now cautioned VCTs are not the only vehicles under threat. Ian Sayers, director general, said a number of offshore trusts and REITs are unaware they could be affe...