FCA cracks down on odd investments with UCIS ban

The Financial Conduct Authority (FCA) has announced that it will ban high risk investment schemes from being promoted to the majority of UK retail investors.

New rules will ban the marketing of unregulated collective investment schemes (UCIS) and non-mainstream pooled investments (NMPIs)

Examples of the sorts of things held in UCIS and similar products include fine wines, crops, timber, and speculative financial instruments and traded life policies.

Monica Gogna, a Partner in the Financial Regulation team at law firm Pinsent Masons, said:

This announcement marks a clear line in the sand that the regulator wishes to impose between retail and non-retail investors. However, the question remains as to whether, in time, this willingness to ban products may lead to a real block on product innovation, which can also potentially cause detriment to the consumer.