UK FCA Imposes Three-Month Notice Period for Property Fund Redemptions

Key Facts

1The UK Financial Conduct Authority (FCA) seeks to avoid fund suspensions during market turmoil by restricting immediate access to investments in illiquid assets.

The UK Financial Conduct Authority (FCA) is implementing a mandatory three-month notice period for investors seeking to withdraw capital from property funds. The Financial Times reported that the regulator seeks to address liquidity mismatches by restricting immediate access to investments held in illiquid assets.

The regulatory shift is designed to prevent a repeat of mass fund suspensions seen during previous periods of market volatility. By enforcing this notice period, the FCA ensures that fund managers have sufficient time to sell underlying property assets to meet redemption requests without compromising market stability.