FCA eyes 90-day redemption rule on illiquid funds to end mass withdrawals
Key takeaway
FCA proposes 90-day minimum notice for withdrawals from illiquid funds, capping redemptions at once per month
- Step 1 · The triggerthe FCA mandates 90-day notice and monthly redemption caps on illiquid open-ended funds
- Step 2 · Knock-onwealth platforms and fund supermarkets must rebuild client terms, cash buffers, and product governance to comply
- Step 3 · Knock-onretail-facing property and private-equity fund strategies shrink as the liquidity premium is repriced and distribution channels narrow
- Step 4 · Knock-onproperty-development finance and growth-equity pipelines slow as retail capital is gated or redeployed to liquid alternatives
- Step 5 · Reaches youUK SMEs in property services, platform-dependent advisory, and HNW-facing discretionary sectors see mandate cancellations, fee pressure, and slower client capital deployment
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: City A.M.
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