This is long over due. (Click the image)
In short, the British regulator is going after all those scumbags who have been peddling investments in things like bamboo, biofuels, land schemes and unlisted shares to the unwary.
The FSA is proposing to ban the promotion of so-called unregulated collective investment schemes and special purpose vehicles to retail investors. Hitherto, bucket shop operators and lone financial advisers have been able to skirt the main financial regulatory regime by simply “assessing” a product’s suitability, rather than assessing who the investment product was being sold too. A nutty state of affairs.
On the FSA’s figures, this market spivery currently runs to around £4bn, with about 85,000 gullible investors sold UCIS and SPVs.
This yawning loophole now looks as though it is being closed.
Which is better late than never.
Consultation drags on to November 14.