FCA reveals new rules for property funds

The Financial Conduct Authority has published long-awaited new rules for funds that invest in property and other illiquid assets. The watchdog launched a consultation into how open-ended funds deal manage illiquid assets after several property funds closed to investor withdrawals in 2016. The “gating” of those funds came in response to a spike in redemption requests after the UK’s Brexit vote. The new rules are aimed at ensuring investors have “clear and prominent” information on liquidity risks, the FCA said, by placing new obligations on the funds. The FCA will introduce a new category of "funds investing in inherently illiquid