Haig Bathgate comments in Citywire on the Financial Services Authority's proposals to ban the promotion of unregulated collective investment schemes (Ucis) to retail investors.

At present, Ucis can be promoted to ordinary retail investors if an adviser first assesses the product's suitability. However, under the new proposals outlined in the regulator's consultation paper, firms will be unable to market Ucis to ordinary retail customers even in the context of financial advice.

Haig welcomes the FSA's proposals to limit Ucis and said that it would not alter Turcan Connell's research coverage or approach. 'A lot of these things are pretty complex. If we use them for sophisticated high net worth investors we spend a long time explaining the relative characteristics of the investment. I think it is a good initiative and should stop the abuse that has been happening.'

He said the firm would continue to use Ucis on a case by case basis, but remains all too aware of their constraints. 'There are instances where we may use them, but we have to be careful as they are not afforded the same protection as other investments. I think the FSA is right to limit their usage.'

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