FCA issues guidance following property fund suspensions

FCA logoThe Financial Conduct Authority (FCA) has today issued guidance after the decision by a number of funds to announce the temporary suspension of trading in their property portfolios and feeder funds.

The guidance reminds fund managers of their obligations to investors and outlines the FCA’s expectations in relation to the suspension of dealings in their funds.

As Andrew Bailey, FCA Chief Executive, said at the Financial Stability Report press conference on Tuesday 5 July, the ability to suspend is built into the structure of these funds. The purpose is to create a pause to allow an orderly process of revaluation to happen without differential treatment of investors.

The FCA has been in close contact with these funds for some time. The decisions to suspend have been taken by the fund managers in accordance with their internal governance arrangements and in close cooperation with their depositories.

The FCA will continue to liaise with the funds as they keep the situation under review

Read the guidance.

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