Regulatory AlertsFS21/8: Feedback to consultation paper on liquidity mismatch in authorised open-ended property funds
The Financial Conduct Authority published feedback on its proposal to introduce mandatory notice periods of 90 to 180 days for authorised open-ended property funds to address liquidity mismatches. While the regulator supports the principle of aligning redemption terms with asset liquidity to protect consumers and improve market integrity, it has deferred finalizing policy until the third quarter of 2021 to consider operational challenges and the outcomes of the Long-Term Asset Fund consultation. The decision also hinges on resolving ISA eligibility concerns and ensuring the broader investment distribution ecosystem can support less frequent dealing structures.
Share