Woodford gating forces illiquid assets rethink; FCA mulls own PRIIPs guidance

FCA reveals asset management priorities

The gating of the Woodford Equity Income fund has forced the Financial Conduct Authority (FCA) to reassess its impending shake-up of rules governing open-ended fund investments in illiquid assets, the regulator has revealed, as part of its priorities for the asset management sector.

It follows the FCA's October 2018 consultation on new rules for open-ended funds marketed to retail clients investing in illiquid assets, which came in the fallout from the property fund gatings seen in the wake of June 2018 referendum. The regulator outlined measures including a requirement on firms to suspend dealing when there is significant uncertainty over the valuation of property and other "immovable" assets, as well as measures to improve liquidity management and disclosure about inherent liquidity risks to potential investors. However, the FCA said on Tuesday (9 July) in its ...