FCA urges groups to adopt 'remediation measures' as review finds failings in post-Brexit property turmoil

Will review whether regulatory change required

The Financial Conduct Authority (FCA) has criticised fund managers, providers and depositories for their handling of the liquidity crisis that hit the £35bn open-ended UK commercial property sector in the wake of the 2016 referendum on EU membership.

In its review of property funds and liquidity risks, released today, the FCA found failures in planning, communication, policies and procedures, which it said required "remediation measures" to ensure compliance with its expectations and requirements. The regulator, which engaged with over 60 firms, found authorised fund managers (AFMs) "did not adequately plan, or have clear policies and procedures, for valuing their property portfolios under stressed market conditions". In addition, some AFMs did not "adequately consider the implications of their distribution model" in their liquidi...