The ban, which came into effect on the 1 January of this year, prohibits the promotion of Ucis (unregulated collective investment schemes) and close substitutes to the majority of UK retail investors.
These schemes, now referred to by the UK's Financial Conduct Authority as ‘non-mainstream pooled investment’ (NMPI), may only be marketed to those investors who are deemed fully to understand the risks involved, such as high net worth and institutional investors.
In a statement, HICL Infrastructure said: "The board confirms that it conducts the company's affairs, and intends to continue to conduct the company's affairs, such that the company would qualify for approval as an investment trust if it were resident in the United Kingdom.
"It is the Board's intention that the company will continue to conduct its affairs in such a manner and that IFAs should therefore be able to recommend its ordinary shares to ordinary retail investors in accordance with the FCA's rules relating to non-mainstream investment products."
There have been concerns over the type of funds that will be caught by the new rules, which are designed to cover investment funds specialising in areas such as private equity, hedge funds and qualified investor schemes. It had been thought that VCTs might form part of the new rules, but the FCA has clarified that this will not be the case.
Providers have suggested that those alternative funds not caught by the new rules will see increasing inflows. For example, Octopus Investments believes that VCTs are likely to gather greater assets in the coming year as a result of the regulatory ban.
