Kuber Ventures, the multi-manager platform for EIS portfolios, has welcomed the launch of the Enterprise Investment Scheme Association’s (EISA) new dedicated EIS diploma.
The FCA’s policy decision last week not to include EIS in a ban on the promotion of UCIS to retail investors means that financial advisers, if they want to remain independent, must now consider the schemes for clients. Kuber Ventures expects that the decision will help the EIS market grow significantly and that the new industry recognised qualification comes at just the right time.
John Williams (pictured), managing partner at Kuber Ventures, says: “In light of the FCA’s policy decision we can expect to see investment in EIS increase significantly, possibly up to GBP2.5bn each year.
“Therefore it is fundamental that financial advisers and wealth managers alike are fully aware of what EIS are, how they work and who they are appropriate for.
“Having an industry acknowledged qualification is vital in a rapidly expanding sector such as EIS and will help to promote the products even further.”
The EISA’s new diploma, sponsored by Kuber and structured by Tolleys, is the first of its kind for the sector. Until now there has been a gap in informed assistance for financial advisers and wealth managers when it comes to advising their clients on EIS.
Williams says: “General market perception has been that EIS are high risk and complex. This is simply not the case and the EIS diploma goes a long way in demystifying the investment case.
“It is important that advisers understand how valuable and tax efficient EIS are, especially at a time when people are becoming trapped by the new annual and lifetime pension rules and struggling to find returns in the low interest environment.
“Tax relief on EIS is extremely compelling and there are many effective ways to utilise investments efficiently to maximise the benefits. Once the advisory space is au fait with the intricacies of this type of investment we expect to see a very encouraging response from investors.”
The new diploma with CPD consists of 10 hours online study and costs GBP175 per individual. The course content covers all aspects of EIS and Seed EIS investing as well as who can use it, restrictions, single EIS companies v EIS funds/portfolios, tax reliefs, how they work, things that can go wrong and regulation.
The new diploma automatically provides affiliate membership of the EISA.