Andrew Aldridge suggests five thematic questions advisers can ask to ensure an EIS provider is not just up-to-speed with recent changes to the tax-efficient investing landscape but an appropriate home for client money.

There has been a significant uplift in the degree of interest in the Enterprise Investment Scheme (EIS) recently – particularly since the Budget and the new measures announced by Chancellor Philip Hammond. The new principle-based approach by the government has changed the EIS market and is designed to ensure investors take a proportionate level of risk in order to qualify for the generous tax reliefs available via EIS.

These new developments present significant challenges for certain types of EIS investment managers/providers as the days of capital preservation-focused EIS investments are now behind us.

EIS providers who have previously operated in this part of the market will need to change – but that may take some time and it is therefore important advisers are clear about the questions they should be asking any EIS manager to obtain full and transparent information before making a recommendation.

With that in mind, here are five thematic questions to ask to ensure providers are not just au fait with the changes but are an appropriate home for your clients’ money.

1. Speed Of Deployment Of Funds By The Provider

2. What About The Fee Levels?

3. What About A Performance Fee Hurdle Rate?

4. The Adviser Should Really Be Aware Of The Provider’s Deal Flow

5. What About That All-Important Sector Experience?

Click here for the full article on How to pick the right EIS provider.

Source: Professional Adviser



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