It rather looks like it is game over for alternative investment UCIS schemes within the mass retail market.
The FSA’s August consultation document outlines what can only be said to be an open and shut case. Many alternative investments packaged up within UCIS schemes are in opaque structures, where risks are not properly explained and liquidity is almost non-existent. The case studies given by the FSA pander to all the worst stereotypes of the mass media’s coverage of exotic investments, with pride of place going to poor old grannies being sold simply ludicrous investments by commission-hungry salespeople. There is the 88-year-old being advised to switch 70% of their investment portfolio f...
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