The Association of Investment Companies has warned the FCA’s intention to allow Long Term Asset Funds to be marketed to a wider retail market is “an accident waiting to happen” and is urging the regulator to halt any changes to their distribution at this time.
In August, the FCA launched a consultation that could see LTAFs marketed to a wider group of retail investors and schemes in the future. These proposals would provide access to non‑traditional investments, which consumers might use to diversify their portfolio and for potentially higher returns, while still offering strong consumer protection. As the period for feedback closes today (10 October), the AIC has asked the financial watchdog to review its position once LTAFs have demonstrated how they operate in good and poor markets, and proposed the introduction of a two-tier LTAF regim...
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