'There is more to come': What now after the FCA's latest illiquidity crackdown?

New NURS rules published yesterday

Mike Sheen
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The new rules require NURS investing in illiquid assets to provide investors with clearer information on liquidity risks
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The new rules require NURS investing in illiquid assets to provide investors with clearer information on liquidity risks

Industry experts anticipate further rules and scrutiny, as well as an unintended impact on the broader market, as a result of the Financial Conduct Authority’s (FCA) latest overhaul of rules governing Non-UCITS retail schemes (NURSs) investing in inherently illiquid assets such as property.

On Monday (30 September), the FCA confirmed that as of 30 September NURSs investing in illiquid assets will be required to provide investors with clearer and "prominent" information on liquidity risks, and the circumstances in which access to their funds may be restricted. FCA narrows focus on property fund liquidity Managers will also be required to have liquidity risk management plans, while a new category of "funds investing in inherently illiquid assets" is also set to be formed, with funds within this category subject to additional requirements. While CEO of the Investment Ass...

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