Regulatory Alerts2018-10-05
Added · Updated
PS19/24: Illiquid assets and open-ended funds and feedback to Consultation Paper CP18/27
The Financial Conduct Authority introduces a new category of 'funds investing in inherently illiquid assets' (FIIA) for non-UCITS retail schemes (NURSs) that hold at least 50% of their scheme property in such assets. NURSs classified as FIIAs must suspend dealing when the standing independent valuer expresses material uncertainty regarding the value of 20% of the scheme property, unless the authorised fund manager and depositary agree that continuing is in investors' best interests. These funds are subject to enhanced depositary oversight, mandatory liquidity risk contingency plans, increased prospectus disclosure, and a standard risk warning in financial promotions to retail clients. The final rules come into force on 30 September 2020.
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