UK firms that market venture capital trusts over the internet without providing advice could face regulatory sanctions if they fail to give investors adequate warnings of the risks involved.

Research by the Financial Services Authority, the UK regulator, found that most such sites did not explain adequately how a VCT works, with some providing no clarification. Few gave prominence to the risk inherent in long-term investments in small, unquoted companies, the difficulty of reselling VCT investments or the charges levied by promoters.