Non-UCITS retail schemes (NURSs) investing in inherently illiquid assets such as property are to be forced to abide by new liquidity rules from next year, with the Financial Conduct Authority (FCA) moving to ensure investors are "appropriately protected".
The new rules, which will come into force on 30 September 2020, aim to ensure NURSs managers provide investors with clearer and "prominent" information on liquidity risks, and the circumstances in which access to their funds may be restricted. It will also place additional obligations on the managers of funds investing in inherently illiquid assets to maintain plans to manage liquidity risk. The FCA is also aiming to reduce the potential for some investors to "gain at the expense of others", and reduce the likelihood of runs on funds leading to a ‘fire sale' of assets which disadvanta...
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