Proposed notice periods are intriguing, writes Alistair Wilson, but there are three problems the FCA must take the opportunity to solve...
The Financial Conduct Authority (FCA) wants to even up a liquidity mismatch in open-ended property funds. Hear, hear. With property funds needing to be suspended more frequently over the last decade - and interestingly the FCA notes suspensions "generally work" - this may incentivise some investors to redeem ahead of others, possibly disadvantaging those who remain. To level things up, in CP20/15 it is proposing investors notify fund managers in advance when they wish to redeem. How far in advance? Currently, the proposal is for somewhere between 90 and 180 days. Easy math: that's up ...
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