Non-professional investors should not be able to access Long-Term Asset Funds (LTAF) in order to prevent another Woodford debacle, the Association of Investment Companies has warned.
The warning comes following a report from Research in Finance, which revealed that 86% of investors in the former Woodford Equity Income fund (now LF Equity Income) suffered a negative impact on their finances as a result of the June 2019 suspension. A further 53% reported a negative impact on their general wellbeing, which has left 77% of former investors with less trust in the investment industry than they had before. The LTAF is currently under consultation from the Financial Conduct Authority and aims to create a structure that allows open-ended funds to access illiquid investment...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
