The FCA have released Policy Statement 19/24 on Illiquid assets and open-ended funds and feedback to Consultation Paper CP18/27. Please find links below:
AREF have issued a joint statement with The Investment Association below:
Commenting on the FCA's new rules for open-ended funds investing in inherently illiquid assets, Chris Cummings, CEO of the Investment Association, said:
“We welcome the FCA’s pragmatic and measured approach, which recognises the importance of enabling investment in illiquid assets through open-ended funds.
“Fund suspension is not undertaken lightly and acts as an important and sometimes necessary tool to protect investors’ interests. The new rules, which combine enhanced liquidity management with additional disclosure requirements, will benefit investors, helping them make informed choices about their investments and strengthening fund management processes.
“We will continue to work with the industry and regulators to ensure that appropriate liquidity management processes are in place. We also look forward to further developing the IA’s proposed Long-Term Asset Fund to help widen access to more illiquid assets, opening up investment opportunities.”