New rules to make long-term investment funds clearer
By FCA
AI summary of the source article
The Financial Conduct Authority (FCA) has published a consultation setting out clearer expectations for asset managers operating long-term investment funds, such as property and infrastructure. Under the proposals, investors will face a 90-day notice period to redeem funds, replacing daily withdrawals that risk cash shortages and fund suspensions during market stress. The changes are designed to allow orderly asset sales, protect remaining investors, and align the UK with international open-ended fund liquidity standards. Existing non-UCITS retail schemes (NURS) will have two years to comply, with feedback on consultation CP26/35 open until 11 December 2026.
Why it matters
The changes aim to prevent sudden fund suspensions and fire sales during market stress by establishing realistic redemption timelines for illiquid assets.
Key facts
- Investors will be required to give a 90-day notice period to redeem money from funds holding inherently illiquid assets.
- Existing funds will have two years to comply with the proposals and must provide investors with at least one year's notice.
- The consultation covers authorised fund managers of non-UCITS retail schemes (NURS) and accepts feedback until 11 December 2026.