Wed, Oct 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: FCA’s PS13/3: Retail investors unwelcome in Unregulated Collective Investment Schemes

Friday, June 14, 2013

This piece was contributed by Oliver Lodge of UK based Owl Regulatory Consulting.

Whatever our hazy recollections of the good old days, there never was a time when regulators were relaxed about the promotion of unregulated collective investment schemes. Twitchy might be the best description; paranoid might be another, but that would not be entirely fair. Damage has been done with CISs and it has usually been through the unregulated version. The industry is not beyond criticism, either for its management of the funds or for the way that they have been promoted. And the same can be said for animals that were not CISs, but looked remarkably like them. So it’s hard to say that this (FCA’s new rules published in PS13/3) is OTT. And even the dying breed that cleaves to caveat emptor will recognise that investors were significantly misled on numerous occasions.

But none of that quite explains the prominence that UCIS hold in the hierarchy of legislation. The banishment of the funds is enshrined in the Financial Services & Markets Act itself. Does that demonstrate high-level, even parliamentary, concern or is it just legal mechanics? Probably a bit of both, noting, of course, that financial promotion is not a regulated activity and is therefore open to the unwashed. But the impact has been striking. Once launched in legislation, the issue flows down into two Statutory Instruments and into the regulator’s Handbook too. A......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is