The United Kingdom’s Financial Conduct Authority (FCA) has proposed requiring investors in certain funds holding illiquid assets, including real estate, infrastructure and private companies, to provide 90 days’ notice before redeeming their investments, reported the Financial Times. The proposal seeks to address liquidity mismatches between assets that can take months to sell and funds offering frequent withdrawals. According to the regulator, 17 funds with approximately £7.22 billion ($9.7 billion) in combined net asset value could be affected. The proposed changes would apply primarily to certain authorized retail investment funds with at least 50 percent of their assets invested in inherently illiquid holdings. The FCA said the measures are intended to reduce the risk of suspended redemptions and forced asset sales during periods of market stress. The regulator is seeking feedback on the proposals through Dec. 11 and expects to publish final rules in first half 2027.
