Regulatory Alerts2022-07-29
Added · Updated
PS23/7: Broadening retail and pensions access to the long-term asset fund
The FCA introduces final rules recategorizing Long-Term Asset Fund (LTAF) units from Non-Mass Market Investments to Restricted Mass Market Investments, enabling distribution to mass market retail investors and self-select Defined Contribution pension schemes. Firms marketing LTAFs must provide risk warnings, conduct appropriateness assessments, and ensure unadvised retail investors limit their exposure to 10% of investable assets. The rules also permit Non-UCITS Retail Scheme Fund of Alternative Investment Funds to invest more than 50% in LTAFs under specific liquidity conditions and remove the 35% illiquid asset limit for unit-linked funds within qualifying scheme default arrangements. These new Handbook rules and guidance come into force on 3 July 2023.