Last week the Financial Conduct Authority (FCA) revealed its new rules for non-UCITS retail schemes (NURSs) investing in inherently illiquid assets.
While the suspension of Woodford Equity Income - a UCITS fund - has been the big fund liquidity story of 2019, the regulator appears primarily worried about open-ended property vehicles. The 2016 property fund gatings in the wake of the Brexit referendum served as a stark reminder of the pitfalls of investing in inherently illiquid assets like bricks and mortar via an open-ended vehicle. And with a regulator that is actively supportive of the fund suspension mechanism as a means of protecting investors, and new rules that seemingly encourage it, it seems likely that gatings will becom...
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