Venture capital trusts believe that new rules planned by the Financial Services Authority could cost them three-quarters of their investor base, with one wealth manager warning the developments are “very concerning” for small business investment.

A survey among UK venture capital trusts, which invest capital from high-net-worth individuals in small cap UK businesses, has revealed mounting concerns over moves by the FSA to limit the promotion of unregulated collective investment schemes - or UCISs - to only the most sophisticated of high-net- worth individuals.