23 Sep 2020

The FCA have released a consultation this morning on measures to address the potential harms caused by a mismatch in liquidity in certain UK authorised funds that invest directly in property, for example offices, shops and warehouses. The deadline for response is 3rd November 2020.

Paul Richards, Managing Director of the Association of Real Estate Funds, said:

"We welcome the FCA's consultation which aims to better align the liquidity of fund units with that of the fund assets. Property funds can play an important role in helping savers achieve their long-term financial goals as part of a balanced investment portfolio.  Our industry has faced unprecedented circumstances in recent years which have seen funds suspended to protect investors. This consultation will offer a welcome opportunity to reflect on how these funds have functioned and where there is room for innovation to ensure that we continue to meet the needs of savers and investors. We look forward to working with the regulator on their proposals." 

Author

Jacqui Bungay

Jacqui Bungay

AREF Policy Secretariat , AREF

Jacqui provides policy guidance and secretariat services to the AREF Board and AREF Management Committee as well as the following AREF Committees: Corporate Governance, ESG & Impact Investing, Investor, Public Affairs, Research and Information and Retails Funds. In addition, Jacqui monitors members’ compliance with AREF’s Code of Practice. 

Jacqui joined AREF in 2014 after working for over 25 years in fund compliance, client relationships and administration at Natwest Trustee & Depositary Services.