The traded life policy specialist commissioned law firm Bond Pearce to draw up the checklist which offers a number of reminders for advisers. This includes ensuring the client is eligible to invest in an Ucis, ensuring that the information provided to the client is fair and ensuring that the risks have been properly explained.
Peter Winders, EEA Marketing Director, said: “The term unregulated collective investment scheme is misleading.
“It suggests the products have no regulatory oversight, but that is not the case for the EEA Life Settlements Fund or many others. Advisers risk throwing the baby out with the bathwater and doing their clients a disservice if they reject Ucis funds altogether.”
He added: “Many Ucis funds can offer suitable clients considerable benefits. Advising on Ucis should not be a cause for concern among intermediaries, provided they follow the right steps and processes to ensure client suitability, and this checklist should help.”
Ucis products have, perhaps unfairly, acquired a bad reputation in recent years, with many advisers afraid to offer advice on the products due to the perceived extra risk to themselves and clients.
This fear has lately been perpetuated by fines and arrests made in relation to the sale of Ucis products. In a recent case a person was arrested after selling the products to retail investors.
However, EEA said, through providing the checklist, advisers can be confident in offering EEA products to clients.
To download a copy of the checklist click here or contact EEA Fund Management.
