Venture capital trusts (VCTs) are facing the prospect of a steep decline in fundraising if they are not granted an exemption from the FSA's ban into the sale of unregulated collective investment schemes (UCIS) to retail investors.
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The government will be able to widen the scope for VCT investment after the European Commission approved its proposals.
Ticketus, the company backed by the Octopus Protected EIS scheme, has withdrawn from discussions with Blue Knights Consortium over a takeover of Glasgow Rangers FC.
Venture Capital Trusts(VCTs) have posted another strong fundraising year in 2011/12, with £330m of new shares issued in difficult market conditions.
The Treasury has put proposals to widen the investment universe for venture capital trusts on hold to protect the vehicles from losing their tax advantages.