FCA consults on LTAFs and feeds back on liquidity mismatch in authorised open-ended property funds consultation

Article summary

The Financial Conduct Authority (FCA) has published feedback statement FS21/8, which contains feedback to consultation paper CP20/15 on liquidity mismatch in authorised open-ended property funds. The FCA says stakeholders raised concerns around operational challenges for fund managers and other firms, in particular in relation to ensuring that the infrastructure to support purchase and sale of holdings by retail investors will work seamlessly with notice periods. Some of these operational challenges also need to be addressed to make progress on new options for a Long-Term Asset Fund (LTAF), and are addressed in a new consultation, CP21/12, A new authorised fund regime for investing in long term assets. This contains proposals on a regime to enable UK-authorised open-ended funds to invest more efficiently in long-term, illiquid assets. Responses are sought by 25 June 2021.