'Draconian' FCA open-ended property fund measures expected to drive flows to trusts and ETFs

FCA seeks 180-day notice period for redemptions

Mike Sheen
clock • 4 min read

Measures outlined by the Financial Conduct Authority (FCA) to address the liquidity mismatch in open-ended property funds are expected to dampen investor appetite for the vehicle, and drive flows out of the sector in favour of property investment trusts and ETFs.

The FCA announced on Monday (3 August) its plans to bring a halt to the waves of suspensions in IA UK Direct Property recent years, which included the implementation of a notice period of up to 180 days for consumers redeeming investments. Client director at Bowmore Asset Management Charles Incledon said the changes would mean "a lot of financial advisers will just stop recommending open-ended property funds to their private clients", while wealth managers will be "far less enthusiastic" about the funds. He added: "The issue of private investors being unaware that they might be locked...

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

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

By late 2027

Patrick Brusnahan
clock 28 October 2026 • 1 min read
Investment tax relief rises by smallest amount in four years amid recent Budget measures

Investment tax relief rises by smallest amount in four years amid recent Budget measures

Bowmore Financial Planning research

Jack Roach
clock 28 October 2026 • 2 min read
Defaqto to launch rating for newer funds and portfolios

Defaqto to launch rating for newer funds and portfolios

Combines Defaqto and RSMR expertise

Jen Frost
clock 27 October 2026 • 2 min read