The FCA is proposing to change the definition of Non-Mainstream Pooled Investment (NMPI), a categorisation for products that causes the sale of them to be restricted. The proposal can be found from page 44 of Quarterly Consultation CP 16/17.

The proposal is to create a new subclass of of NMPI called the "Pooled Investment Vehicle".

The purpose of the change is to further prevent the promotion of investments held in Special Purpose Vehicles (SPV) to ordinary retail clients.

You can read our letter of response to the FCA here, which outline that the first of the two options proposed by the FCA is clearer. However, we highlight that the use of SPVs can have benefits for consumers, especially in property investments, and that the enforcement of existing rules could produce the result needed.

Posted on 01/09/2016 in Legal Updates

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