Property fund managers criticise FCA proposals

Fund managers say that new proposals to make open-ended property funds fairer for retail investors, following mass suspensions amid the Brexit-related sell-off in 2016, could make it harder for investors to withdraw their money.

The Financial Conduct Authority said this week that funds invested in illiquid assets such as commercial property and infrastructure could be forced to halt trading as soon as there was uncertainty about the value of 20% of those portfolios.

The proposal was part of a package designed to protect investors in open-ended funds which ran into difficulties after the 2016 EU referendum when a significant number of investors tried to sell at the same time.

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