Long-term asset funds (LTAF) will require a minimum of a 90-day notice period to be considered eligible under new rules set out by the Financial Conduct Authority on Monday (25 October).
The new policy statement, A new authorised fund regime for investing in long term assets, detailed the regulator's response to the feedback from its initial proposition for an authorised open-ended fund model that would allow investment into long-term, illiquid assets. Along with a minimum notice period, the regulator also set out rules that would prohibit an LTAF to permit redemptions more frequently than monthly. This is in order to address the consistency between the liquidity of a fund's assets and its redemption terms, the FCA explained. "We do not want to impose unnecessary r...
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