Asset Management

FCA finalises fund framework to spur investment into riskier assets

The new long-term asset fund will require investors to give at least 90 days' notice before making withdrawals

The FCA’s new LTAF regime - with a minimum notice period of 90 day - would appeal to defined contribution pension schemes
The FCA’s new LTAF regime - with a minimum notice period of 90 day - would appeal to defined contribution pension schemes Photo: Chris Ratcliffe/Getty Images

The UK regulator is pushing ahead with plans for a new fund structure aimed at giving pension funds and other professional investors access to riskier assets such as infrastructure and private equity.

The Financial Conduct Authority in May launched a consultation on proposals for a long-term asset fund, following concerns that conventional investment fund structures that offer the promise of daily liquidity are no longer appropriate for less liquid assets.

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