FCA considers swing pricing and notice periods as remedy for fund suspensions

No restrictions on daily-dealing funds owning illiquid assets

The Financial Conduct Authority (FCA) has ruled out stopping open-ended funds from investing into illiquid assets completely, as it continues to assess the best way of protecting investors against liquidity mismatches.

Daily dealing funds investing into assets that cannot be easily sold has led to the high-profile gatings of the LF Woodford Equity Income fund as well as a swathe of property funds on a number of occasions,...