New Financial Conduct Authority (FCA) rules designed to improve the governance of funds investing in illiquid assets will do little to tackle the inherent problems in direct property funds, which have been hit with heavy outflows since the 2016 Brexit referendum, according to fund buyers.
Last week the FCA confirmed that as of 30 September next year non-UCITS retail schemes (NURSs), such as those in the IA UK Direct Property sector, will be subject to new liquidity-related requirements designed to ensure investors are "appropriately protected". In the wake of the 2016 EU referendum, waves of outflows forced several property funds to gate to protect investors while redemptions were met. Ben Yearsley, director at Shore Financial Planning, said he "cannot see what difference the FCA's new rules are really going to make", adding that his firm is currently in the proc...
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