FCA hits NURS funds with new liquidity rules as Woodford forces rethink

Will not apply to UCITS

Mike Sheen
clock
New rules come in on 30 September 2020
Image:

New rules come in on 30 September 2020

Non-UCITS retail schemes (NURSs) investing in inherently illiquid assets such as property are to be forced to abide by new liquidity rules from next year, with the Financial Conduct Authority (FCA) moving to ensure investors are “appropriately protected”.

The new rules, which will come into force on 30 September 2020, aim to ensure NURSs managers provide investors with clearer and "prominent" information on liquidity risks, and the circumstances in which access to their funds may be restricted. Property sector doubles cash amid industry's liquidity crisis It will also place additional obligations on the managers of funds investing in inherently illiquid assets to maintain plans to manage liquidity risk. The FCA is also aiming to reduce the potential for some investors to "gain at the expense of others", and reduce the likelihood of ...

To continue reading this article...

Join Investment Week

  • 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

More on Property

Issuing shares at 117p per share.

Impact Healthcare REIT issues new equity to acquire care homes as inflation rises

Impact Healthcare REIT is raising new equity, the target amount of which has not been stated, to acquire a pipeline of care homes, as investors scramble to protect investments from rising inflation.

clock 22 June 2022 • 2 min read
Index providers have become “increasingly influential”.

SEC considering treating index providers as investment advisers

No longer 'data providers'

Elliot Gulliver-Needham
clock 17 June 2022 • 1 min read
JB Beckett

JB Beckett: Competition and the future of financial services

Not such a 'British Bang'

JB Beckett
clock 16 June 2022 • 4 min read
Trustpilot