FSA actions in connection with Unregulated Collective Investment Schemes (UCIS) have featured a few times in Regulatory Roundups.
Mr P Banfield and Mr A Moss, the Directors of (and in the case of the latter also the Compliance Officer and MLRO of) an IFA firm were subject to FSA sanctions arising from advice given to clients concerning investment in UCIS products.
It is worth noting that it was not simply an IFA suitability issue (COBS 9) but also the lack of sufficient knowledge by either of them of the statutory and regulatory restrictions relating to UCIS and the restriction on the promotion of UCI Sunder section 238 of FSMA. The rules and regulations surrounding financial promotions in general, and particularly with regard to UCIS (and bear in mind even certain types of UCITS-as mentioned in Regulatory Roundup 29 – will be classified as UCIS) can be confusing and our clients should feel free to contact their usual Complyport consultant to discuss any concerns they have.
Mr Moss was subject to a prohibition order, the effect of which was to prohibit him from performing any ‘significant influence function’, which is basically any controlled function except for the CF30 Customer function. On the other hand Mr Banfield was prohibited from performing any controlled function as well as suffering a financial penalty of £10,500. Both can ask the FSA to revoke the orders if they are able to demonstrate satisfactorily that their respective shortcomings have been remedied.
