This article is taken from FT Adviser, where Intelligent Partnership was featured. Click here to read the original article

Advisers are now more responsible for assessing suitability as investments such as there are more VCTs on platforms.

Daniel Kiernan, research director for alternative investment research firm Intelligent Partnership, explained: “Ultimately, suitability is something that will sit with the adviser and not the platform or provider. So it must be hoped that if VCTs become commonplace on platforms, it doesn’t lead to complacency or mis-perceptions about what these products are.”

Changes announced in the 2014 Finance Bill allowed shares in VCTs to be bought by a nominee, but still qualify for the tax reliefs. Nominee ownership is a key requirement in enabling financial advisers to manage their clients’ investments on platforms.

In April, Octopus Investments announced that it had completed a development with Transact to enable shares in its VCTs to be brought and held on the platform.

Adviser view

Dennis Hall, managing director of IFA Yellowtail Financial Planning, said “Yes, it is our responsibility. Just because a fund is on a platform it does not mean we will use it. There are some VCTs being sold now by people we would not use.

“Of course, this move will make it easier to sell administratively, and larger VCTs may find it easier to find an audience. But if the proposition does not stack up it is not down to the provider.”