“If this innovative fund structure, created by our rules, is taken up by the asset management industry, it may provide alternative routes to returns for investors, while supporting economic growth and the transition to a low-carbon economy,” FCA CEO Nikhil Rathi said in a news release Monday.
Commenting on the FCA decision, Jonathan Lipkin, director of policy, strategy and research at the Investment Association, which represents the money management industry in the U.K., said via email: “Investing in illiquid assets is a way for savers to diversify their portfolios and at the same time provide capital for companies and infrastructure, which boost the economy. The Long-Term Asset Fund will offer DC pension schemes and certain sophisticated retail investors a new way to access illiquid investments through a fund structure designed specifically for such investments, with notice periods that are consistent with the time it takes to sell the underlying asset.”
“We look forward to working with policy makers, investment managers, distributors and other organizations to make the LTAF a success,” Mr. Lipkin added.
Source: https://www.pionline.com/regulation/fca-approves-open-end-fund-structures-illiquid-investing