FCP leads the way on financial education for advisers

by Kim Johnson | Aug 27, 2013

The FCA recently announced a number of changes to UCIS schemes in its 13/3 paper in a bid to protect retail investors from potentially risky non-mainstream investment products. While we believe these changes are a positive step forward, ensuring that investors are closely matched to the products being promoted, there is no doubt they will affect the day-to-day business of many advisers. It is vital advisers are ready for these changes, which will take effect from January 2014.

We are focusing our efforts on educating financial advisers in advance of the changes. In early July, we hosted a series of seminars aimed at helping financial advisers prepare for the new rules. These sessions were attended by well over 70 advisers and following the success of these we are rolling the seminars out nationally in September, in Manchester, Leeds and Bristol.

The seminars are intended to help advisers effectively implement the changes by offering practical insight into what advisers can and cannot do in client practice. Under the new rules for instance, advisers will have to satisfy themselves that an exemption is available before introducing or recommending a non-mainstream product to any client. Exemptions are available for Enterprise Investment Schemes (EIS) to mainstream retail investors (which we believe is a great outcome), ensuring money continues to flow into small enterprising companies.

The feedback we have received from advisers has been positive. Advisers have found the sessions particularly useful for understanding the preliminary process, and getting a firm grasp on how to assess whether a client qualifies as a sophisticated investor as well as increasing their overall understanding of UCIS and managing existing UCIS clients.

They also found the discussions around exemptions useful. This strikes a chord with us, as we are a leading provider of alternative investments, including EIS schemes. Investors have been disappointed with the returns delivered by traditional asset classes in recent years and are increasingly looking at alternatives. We believe that EIS will soon begin to take up a larger share of the market, as it offers the potential of significant growth to portfolios and a key part of retirement planning for investors who are at or near the pension cap.

The seminars will be taking place as follows:

Manchester – 24 September
Leeds – 25 September
Bristol – 26 September

For more information please contact sales@futurecapitalpartners.com