Sustainable Capital Welcomes FSA Intervention in Unregulated Collective Investment Schemes

Sustainable Capital Luxembourg S.A. welcomes the crackdown on unregulated investments by the Financial Services Authority (FSA) in the UK.

Online PR News – 31-August-2012 –The FSA in London has published proposals to ban financial advisors from recommending financial products and investment classed as Unregulated Collective investments Schemes (UCIS) to many regular retail investors in Great Britain in a strategy to combat mis-selling.

The proposals continue that complex financial products should be restricted to people with extensive experience of investments so that they understand the risks, or to those earning more than 100,000 a year or having sums greater than 250,000 to invest.

"While we have found problems with a number of sales, we are not saying all existing investments were mis-sold," stated Gavin Stewart, the FSA's acting director of policy, risk and research. The FSA went on to advise that in 2013 its successor, The Financial Conduct Authority, is expected to have additional powers to help check and verify the suitability of new financial products to their target market, andintervene if problems become apparent.

Michael Young, Director of Sustainable Capital Luxembourg S.A., supported these new proposals "Mis-selling can occur in many types of industry, but when you are dealing with the investments and pensions of individuals it can be particularly cruel. With the FSA proposing a tougher approach on unregulated funds in the UK it can only be good news for the consumer. The product we have with the Sustainable Resources Fund is a highly regulated fund, and an investment perfect for SIPPS and institutional investors." Mike went on to clarify that "regulation was one of the key stones in establishing the SRF, it reassures our investors and differentiates us against the UCIS sector. The Sustainable Resources Fund is designed to generate good financial returns for our sophisticated investors and bring benefit to local communities where our projects operate."

Sustainable Capital is the Investment Advisor to the Sustainable Resources Fund and consequently provides exhaustive project due-diligence to the Investment Management team including feasibility studies, independent valuations, business plans and a clear exit strategy on any project considered. "We liaised extensively with distribution partners to ensure our fund met sophisticated investors' portfolio needs and the key message we received is that there is a paucity of regulated investments in the market that offer liquid access to sustainable resources such as agriculture, forestry, biomass and farmland" added Michael Young CFA.

To create the most robust and transparent process possible world class parties including Societe General as custodian, KPMG as the auditor and Apex Fund Services as fund administrator have all been appointed. Investors also benefit from an independent fund board. Sustainable Capital feel that no other fund presently in the market has done more to put in place a transparent and thorough process to source, evaluate and execute projects for investors seeking exposure to this sector.

The Sustainable Resources Fund's investment objective is to achieve capital growth over the medium to long term via investment in forestry, agriculture, biomass, farmland and other sustainable resource assets globally. The target return net of fund fees is 15% per annum.

 
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