Dermot Campbell, Managing Partner Kuber Ventures, has been commenting in the press this week regarding the possible restictions on the selling of EIS under FSA consultation paper (CP) 12/19.
One of the issues with EIS investments and CP 12/19 is that some EIS funds could fall within the ban, but single company EIS would not.
Dermot commented “This will leave three potential outcomes. Firstly, EIS get complete exclusion and remain unclassified as Non Mainstream Pooled Investments (NMPIs), secondly that some are caught and some aren’t which means some providers will adapt their offering to ensure they aren’t affected, or thirdly, that EIS will be fully captured by the legislation.
“A scenario where some EIS are classified and some are not will be highly detrimental for the market as it limits competition and choice for the investor, while capturing EIS in its entirety within the legislation will have dire consequences for the economy.
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