IMA urges FSA to tighten definitions in 'toxic' products ban

The Investment Management Association (IMA) has called on the Financial Services Authority (FSA) tighten up its definitions of banned 'toxic' products to avoid a catch-all situation with other similar investments.

In the FSA's consultation, Restrictions on the retail distribution of unregulated collective investment schemes (UCIS) and close substitutes, the FSA proposes to ban the promotion of UCIS to ordinary retail investors. It follows a string of mis-selling cases linked to the sale of UCIS to retail investors. In its response to the paper, the IMA welcomes a process in place to prevent "toxic" products - a label the FSA gave to products such as UCIS and traded life settlement policies - being distributed to retail consumers. However it says: "The definition of 'non-mainstream pooled inv...