A number of financial advisors are still unsure of their strategy post-RDR, and there are likely to be a significant number of previous EIS investors who are not able to afford the fees quoted by financial advisors in return for transacting investments.
This coupled with the uncertainty regarding UCIS and PI insurance, means that many financial advisors are unsure if they are able to offer EIS, and accordingly they may steer clear of EIS.
Although EIS investment figures fell last year, it is expected that with the launch of the Seed EIS, combined with reduced lifetime and annual allowances for pension contributions, there could be increased interest in the EIS market for this tax year.
Paul Thompson went on to say:
“EIS and SEIS are important sources of funding for new and growing businesses which need to be supported and we believe that execution-only websites may be the way forward, as they offer potential investors the capability to view the available investment opportunities in the market place.”
