The Financial Services Authority (FSA) is holding discussions with asset managers over more effective ways to allow groups to close open-ended funds to new investors.
IFAonline's sister title Investment Week understands the regulator is considering being more flexible around the rules which govern the closure of OEICs and unit trusts, to help providers shut funds quickly and protect existing investors. Currently, closing a popular fund when it becomes too large is fraught with difficulties as the structure of OEICs and unit trusts means new shares and units must be created by the provider to satisfy demand. When launching funds, groups are also limited in what they can include in a prospectus regarding a potential closure. Unlike other jurisdict...
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