The VCTA would like to echo the The Association of Investment Companies (AIC)'s concerns, having learned that new legislation to exclude investment companies from the requirement to produce Key Information Documents does not apply to Venture Capital Trusts (VCTs).

“We are eager to understand why this has happened and for the legislation to be amended to include VCTs, which have such a vital role to play in developing the UK’s most innovative, fast-growing startups and SMEs,” said Chris Lewis, Chair of the VCTA, in a letter written to HM Treasury.

“It was our understanding and that of the Association of Investment Companies (AIC) that VCTs were to be included in the legislation, which will formally exempt investment companies from the requirement to comply with PRIIPs and the cost disclosure aspects of MiFID.”

The VCTA hopes that this challenge will be resolved so that VCTs are not singled out as subject to cost disclosure requirements that the government rightly recognises are misleading. We would encourage all VCTA members, managers and further stakeholders to write directly to Tulip Siddiq, urging HM Treasury to change its position.