Funds investing in inherently illiquid assets: a practical guide to the new rules in PS 19/24

New rules governing authorised funds investing in “inherently illiquid assets” will come into force later this year. They are wide-ranging and will affect NURS with direct or indirect holdings in illiquid assets – such as property.

Key amongst the FCA’s package of measures are new rules governing fund suspensions, requirements for enhanced illiquidity contingency plans and significant new disclosure requirements.

Now is the time for all authorised fund managers to review their funds’ holdings, gauge the applicability of the new rules, and take action where appropriate.

This guide aims to:

• summarise the background to the new rules;
• detail the types of funds that will be affected by the new rules;
• explain new regulatory concepts: FIIAs and “inherently illiquid assets”;
• explain is set to change under the new rules; and
• suggest what authorised fund managers should be doing now.

Read our full guide here.

If you require further information about anything covered in this briefing, please contact Jessica Reed, Kya Fear or your usual contact at the firm on +44 (0)20 3375 7000.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, February 2020