BVCA lobbies Treasury over VCT ban

The British Private Equity and Venture Capital Association (BVCA) is holding talks with Treasury officials over the FSA's proposal to restrict VCT and EIS sales to sophisticated investors.

The body is putting its case forward to the government that VCTs should be granted exemption from the FSA’s upcoming guidance on unregulated collective investment schemes (UCIS). Although the FSA is not obliged to bow down to government policy objections, the Treasury would be able to put pressure on the FSA to reverse its stance. In August, a consultation paper from the FSA outlined proposals to ban the promotion of UCIS funds to ordinary retail investors in the UK. VCTs were not specifically mentioned in the proposals, although investment trusts were granted an exemption, suggest...