If you are investment planning in Cheshire or Oswestry, the Financial Conduct Authority (FCA) has unveiled plans to reduce regulatory obstacles to high net-worth individuals.
It is hoped this will not only expand the pool of alternative assets investors, but also help those firms designing new products.
In its consultation published this week, the FCA pushed for a clearer distinction between professional and retail investors. The reason for this is that these groups do not always require the same regulatory protections, hence necessitating less red tape. The FCA proposed enabling people with investable assets worth at least £10 million to be able to decline retail protections. The regulator said it wanted to help investors, and give firms more room to innovate whilst reducing costs.
These are just some of the recent measures that have been announced in order to boost the UK’s investment culture. The City watchdog is keen to get more people investing in stocks and shares, and taking educated risks, rather than depositing cash in low interest accounts. This follows the Chancellor of the Exchequer’s recent announcement of a three-year tax exemption on new UK share flotations to help the London stock exchange’s global competitiveness. In her November Budget, Rachel Reeves also slashed the ISA cash allowance, from £20,000 to £12,000. The other £8,000 is tax-free across stocks and shares ISAs.
Speaking on behalf of the FCA, executive director of markets, Simon Walls, stressed that the measures were designed to bolster investment risk culture across the board.
