Is Property Fund Investment Now High Risk

Published / Last Updated on 08/10/2018

The FCA has published a consultation paper on Illiquid Assets in investment funds e.g. property.

Independent valuer for immovable property in a fund.  If valuer is concerned with valuations, fund managers must suspend trading (investing/disinvesting)
in that fund

Fund managers must also have contingency plans for illiquidity on political or economic risk e.g. Brexit vote caused a 'sell off' in commercial property funds.

There must be an oversight facility for depositaries as well as full disclosure to investors about illiquidity risk and the possible impact if there is a 'run'.

Should property funds now be labelled higher risk?



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