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Advising on Ucis: the rules you need to know
by Nicholas Paler on Jan 12, 2011 at 12:05
The guidance also outlines the rules around which firms are allowed to promote Ucis. Firms with Article 3 exemption from Mifid can provide advice on Ucis, providing the provider or platform they are dealing with is a Mifid investment firm.
Styperson Pope has produced the guidance on behalf of capital protected product provider AVD Wealth.
AVD UK managing director Richard Cook said the firm had commissioned the guide to help advisers dealing with the widened investment remit they will have after the retail distribution review (RDR).
'Being independent after RDR means advising on the whole market and this will help advisers to achieve that,' he said.
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4 comments so far. Why not have your say?
Julian Stevens
Jan 12, 2011 at 14:39
Personally, I've always been very wary of exotic classes of investment, partly because they're suitable for virtually none of my clients and partly because all of those at which I've looked (though I make no claims for comprehensive knowledge of the market) appear, in one way or another, to be trying to defy certain immutable laws of investment and economic gravity. As a colleague recently observed of hedge funds, for example: For every one that's delivered on its potential, there are ten that resoundingly haven't ~ in fact, very much the opposite.
There are, of course, exceptions, as those familiar with them will eagerly point out but, by and large, if something promises or at least enthusiastically implies investment returns head and shoulders above those that may be reasonably expected from more conventional investment vehicles, then ther's very probably a high risk catch somewhere or other.
Advisers beware!
report thisVicky De Val
Jan 12, 2011 at 16:26
Well said Julian. Summed up perfectly some of the brochures I have read.
"trying to defy certain immutable laws of investment and economic gravity."
The best (or should I say worst) one I have heard about is investing with a treasure hunting company in the Caribean and they will pay you a % of any treaure they find on sunken wrecks. Because no one has tried to find this treasure before!
There are a few types of unregulated investment out there that I may personally consider but it is an area where you really have to do your homework and find clients who understand the risks and are willing to take them.
report thisFestinalente
Jan 12, 2011 at 17:03
LOL - "There are a few types of unregulated investment out there that I may personally consider..." I guess you have totally eliminated the 100,000's of funds around the world who are rated 4 and 5 star by MorningStar and which are among the top performing vanilla type funds around. Especially the 100,000's in the USA alone. They could care less if they are registered in the UK. There is a saying that if you can't get a fund manager's job in the US - you end up in the UK.
report thisGerry Cooper
Jan 12, 2011 at 18:21
@ Festinalente
What a stupid and pompous comment
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