The Investment Association (IA) has revealed a package of measures submitted to the Treasury in June, which it hopes will lay the foundation of the UK funds industry in the future.
The trade body's measures also include further details about the establishment of a new Long-Term Asset fund (LTAF) regime for the UK, which will allow investors to better access illiquid assets without some of the pitfalls inherent in existing fund structures like UCITS.
In addition to the LTAF, the IA's package of measures includes a radical simplification of the FCA's fund rules as well as the establishment of a new forum for dialogue between the UK funds industry, regulators and related Government officials.
Investment Week understands the Treasury and Government officials could form their response to the proposals as soon as autumn this year.
The IA provided some insight into the LTAF within its Vision 2020 report in June, laying the groundwork for a UK fund "designed to facilitate investment in illiquid assets".
Its June report also called on the Financial Conduct Authority (FCA) to ensure its post Brexit remit emphasises "the importance both of the global competitive context and the need to facilitate innovation".
In its most recent publication, the IA demonstrated that the LTAF would not be established to replace existing fund structures, but instead would sit as an alternative to QIS, NURS and UK UCITS.
The LTAF would effectively be an adapted NURS structure, available to discretionary and advised retail clients. It could invest in unlisted equity, private debt, infrastructure, partnerships and other NURS assets, but would also be able to make and guarantee loans.
Crucially, though it be established with a "strong focus on investor protection", it would have less frequent dealing than either NURS or UCITS, thereby ensuring assets are locked into investments over the long term and preventing the kinds of gating crises seen in recent months.
The IA explained the LTAF would be about "accessing private markets effectively", while responding to "increasing interest from customers in ways to access investments such as property, infrastructure and private equity/debt through pooled funds", as opportunities continue to shift to private markets.
The trade body also emphasised how the LTAF would focus on domestic emerging customer groups like DC pension members, offering them retail levels of protection as well as access to private markets.
Elsewhere, the IA is also proposing the establishment of an Onshore Professional structure for institutional investors, which would be more tax efficient and better suited to the client base from a regulatory perspective.
IA chief executive Chris Cummings said the LTAF proposal's aim of "broadening access to private assets", is a "reminder of our core purpose as an industry of investing effectively for customers over the long term, adapting to changing needs and helping to drive growth and innovation in the wider economy".
He added: "Since the report was drafted and submitted to HM Treasury in June, the debate has clearly moved further with a renewed focus on the role of illiquid assets in fund portfolios and on industry standards of governance and transparency.
"Our paper, 2025 Vision, sets out a wide-ranging set of actions for industry, in partnership with regulators and policymakers, to ensure that we can deliver successfully over the coming years.
"The LTAF is a key part of that vision, not a specific response to recent events."