FCA Wants Property Funds to Stop Promising Liquidity They…
By Rick Steves
AI summary of the source article
The UK Financial Conduct Authority (FCA) has issued Consultation Paper CP26/35, proposing a minimum 90-day redemption notice for certain authorised funds holding illiquid assets such as property and infrastructure. Targeting relevant non-UCITS retail schemes, the initiative aims to address structural liquidity mismatches where investors can request daily exits from funds holding assets that take months to sell. Responses are due by 11 December 2026. If implemented, existing funds would receive a two-year transition period, and investors would get at least one year's notice to adapt before changes take effect.
Why it matters
The proposal would alter liquidity terms for open-ended property and infrastructure funds, forcing managers, advisers, and distributors to restructure product operations and manage client redemption expectations.
Key facts
- The FCA proposes a minimum 90-day redemption notice for relevant non-UCITS retail funds investing in illiquid assets.
- Consultation Paper CP26/35 is open for responses until 11 December 2026.
- Existing funds would have two years to comply, with investors receiving at least one year of advance notice.