Non-UCITS retail schemes (NURSs) investing in inherently illiquid assets such as property are to be forced to abide by new liquidity rules from next year, with the Financial Conduct Authority (FCA) moving to ensure investors are “appropriately protected”.
The new rules, which will come into force on 30 September 2020, aim to ensure NURSs managers provide investors with clearer and "prominent" information on liquidity risks, and the circumstances in which access to their funds may be restricted. Property sector doubles cash amid industry's liquidity crisis It will also place additional obligations on the managers of funds investing in inherently illiquid assets to maintain plans to manage liquidity risk. The FCA is also aiming to reduce the potential for some investors to "gain at the expense of others", and reduce the likelihood of ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
