FCA unveils final rules to extend LTAF distribution to retail investors

Restricted Mass Market Investment regime

The Financial Conduct Authority has unveiled its final rules to allow mass market retail investors, self-select DC pension schemes and self-invested personal pensions (SIPPs) to invest into a Long-term Asset fund.

Following a consultation process, the final rules recategorise a unit in an LTAF, a new category of authorised open-ended fund designed to efficiently invest in long-term and illiquid assets, from a Non-Mass Market Investment (NMMI) to a Restricted Mass Market Investment (RMMI). The new rules enable a broader range of retail investors and pension schemes to "appropriately" access the LTAF while ensuring they understand the risks involved, as the LTAF is an inherently higher risk product than is typically distributed to retail investors. In the policy statement published today (29 June...