The Financial Conduct Authority (FCA) has proposed changes to help more investment flow into patient capital through unit-linked funds, which are commonly used in defined contribution (DC) pensions.
The regulator said its proposals aimed to help retail savers invest in a broader range of long-term assets via unit-linked funds while maintaining an "appropriate" level of protection. The proposals would also look to address barriers to retail investment in patient capital, the regulator added. The FCA is looking to clarify existing requirements, revise COBS wording to broaden the investment range in patient capital and set a new limit that would require overall investments in illiquid assets in a linked fund to be no more than 50% of its total assets. It is also looking to introduce...
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