FCA proposals seek to push investment towards patient capital

Through unit-linked funds

Tom Ellis
clock • 2 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Appointed representatives: Are you really in control of the risks?

Appointed representatives: Are you really in control of the risks?

'The FCA doesn't just want oversight, it wants evidence'

Paul Bruns
clock 06 October 2026 • 7 min read
Manchester City charges: Treasury Committee chair raises tax questions with HMRC

Manchester City charges: Treasury Committee chair raises tax questions with HMRC

As Tax Policy Associates points to potential £12m in unpaid tax

Jen Frost
clock 02 October 2026 • 2 min read
'Waiting for certainty can itself create the breach': When must a firm notify the FCA?

'Waiting for certainty can itself create the breach': When must a firm notify the FCA?

'A voicemail is unlikely to suffice'

Gareth Fatchett
clock 02 October 2026 • 5 min read