Somewhat belatedly, we have the FCA's formal consultation proposing the invention of a new category of fund – "funds investing in inherently illiquid assets" or "FIIAs". For these types of funds, there are proposals for mandatory suspension of dealings in certain situations, improvements of liquidity risk management policies and better disclosures.
Unfortunately this consultation first pursues some ideas of imposing rigid constraints of managers of NURS property funds. Secondly, it is limited in its scope. We await with interest progress on some of the more radical solutions which might be made available for offering appropriate illiquid investment fund solutions to retail investors.
Read the full briefing paper here.