Bank of England warned by FCA of property fund outflow risks

Advance warning of suspensions

Laura Dew
clock • 1 min read

Bank of England officials were warned of the dangers of outflows from property funds a week before suspensions began.

In the minutes of meetings by the Financial Policy Committee held on 28 June and 1 July, the committee was briefed by the Financial Conduct Authority (FCA) on the extent of the increased level of outflows following the Brexit vote, Bloomberg reports. The FCA also indicated to the committee, led by Bank of England governor Mark Carney (pictured), that this could lead open-ended property funds to be suspended in the near term.  Seven providers have now frozen withdrawals from some of their property funds, while others adjusted pricing on their vehicles.  The largest fund to be suspen...

To continue reading this article...

Join Investment Week for free

  • 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

Join now

 

Already an Investment Week
member?

Login

Trustpilot