FSA eyes venture capital promotions

The Financial Services Authority (FSA) is threatening enforcement action against 11 companies over their web-based marketing of venture capital trusts (VCTs).

Research in the area has been ongoing since the FSA identified VCTs as an area of concern in March. The issues do not apply to sales through advisors.

Concerns include:
* Sites failing to mention that the investment must be held for the full three year period to qualify for tax relief
* Sites failing to say that the investment was in small, unquoted companies.

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