29 Jul 2020

Following the introduction by valuation firms of material valuation uncertainty clauses, many funds suspended subscriptions and redemptions in March. New FCA COLL rules that come into effect on 30th September include a requirement that non-UCITS retail schemes (NURSs) investing in inherently illiquid assets must suspend dealing where the independent valuer determines there is material uncertainty regarding the value of more than 20% of the fund’s assets. Although the rules are not yet in place, existing rules require managers to consider the matter and many therefore took the view that they would suspend.

The mandatory provisions from 30th September only apply to funds in the form of a NURS. For other funds, the circumstances in which a fund should suspend should be determined by what is set out in the fund documents. 


John Forbes

John Forbes

Independent Consultant, John Forbes Consulting

John Forbes is an independent consultant advising real estate investment managers, investors and others in the real estate industry in the rapidly changing areas of product development, governance and regulatory matters for real estate funds.  He has advised on the restructuring of high profile open and closed-ended real estate funds in the UK and elsewhere in Europe, as well as the establishment of new funds. He has advised service providers to the real estate investment management industry on the strategic implications of regulatory and other changes.  Prior to setting up John Forbes Consulting LLP in 2013, he spent over twenty-five years with PwC, where he led the firm's Real Estate Industry Practice in Europe, the Middle-East and Africa across all of the firm's services to the real estate industry.

 John is the chairman of the Independent Supervisory Board of the UBS Triton Property Fund, independent chair of the Urban Splash Residential Fund and non executive chairman of Ginkgo Advisor UK Limited.