LTAF retail extension receives mixed reaction as platforms weigh challenges

'What has changed?'

The Financial Conduct Authority has opened up the Long-Term Asset Fund structure to retail investors, a move which has been met with mixed reactions as platforms consider a range of challenges.

Following a consultation launched in August last year, the City watchdog yesterday outlined the final rules allowing mass market retail investors, self-select DC pension schemes and self-invested personal pensions to invest in LTAFs. Finalised in November 2021, this new category of authorised open-ended funds designed to efficiently invest in illiquid assets initially focused on the DC pension market, with Schroders, Aviva Investors and BlackRock launching LTAF products for DC schemes in recent months.  FCA unveils final rules to extend LTAF distribution to retail investors The fin...