Funds fail to innovate two years on from Brexit crisis

Real estate faces a “fundamental long-term problem” as the issues around open-ended retail funds, which caused mass redemptions following the Brexit vote two years ago, have not been resolved.

John Forbes, the former PwC partner who was charged with writing an independent report following the crisis that saw six major funds with £16.6bn in assets suspend trading, has highlighted the lack of progress the FCA has made in pushing the industry forward.

Open-ended retail funds offer daily liquidity despite holding illiquid assets. After the EU referendum, a panic-driven surge in redemptions left several funds with depleted