The Financial Conduct Authority (FCA) has ruled out stopping open-ended funds from investing into illiquid assets completely, as it continues to assess the best way of protecting investors against liquidity mismatches.
Daily dealing funds investing into assets that cannot be easily sold has led to the high-profile gatings of the LF Woodford Equity Income fund as well as a swathe of property funds on a number of occasions, including in earlier this week amid the coronavirus market sell-off. The liquidity crisis at Woodford Investment Management led then-Governor of the Bank of England Mark Carney to claim these funds were "built on a lie". The City regulator reiterated its view that the temporary suspension of open-ended funds "can serve investors' best interests in difficult market conditions". Howe...
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