New FCA liquidity rules fail to shift buyer sentiment on property funds

Reaction to NURS guidelines

clock • 4 min read

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...

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 Investment

Wealth Club launches UK's first private markets SIPP

Wealth Club launches UK's first private markets SIPP

45% income tax relief

Patrick Brusnahan
clock 24 March 2026 • 1 min read
Rebalancing act: Sometimes doing very little in portfolio management is the hardest thing to do

Rebalancing act: Sometimes doing very little in portfolio management is the hardest thing to do

'More often, it's the quieter disciplines that matter most'

Phillip Young
clock 23 March 2026 • 3 min read
Crypto investors receive 40 times more HMRC tax warnings than stock traders

Crypto investors receive 40 times more HMRC tax warnings than stock traders

Data shows enforcement activity shift

clock 19 March 2026 • 2 min read