The FCA is consulting on new rules to stipulate how much notice clients must provide to access long-term investments, such as property and the less liquid private markets.
Under the proposals investors will have to give 90 days' notice to access their funds – as communicated by the fund provider before capital is committed – but investors can be confident they will be able to access their money as specified.
The FCA said funds that currently allow daily redemptions may be forced to suspend all payments due to lack of available cash during periods of stress or volatility or end up holding excess cash rather than investing it as intended. Clients who remain invested may also be harmed by rushed asset sales.
A notice period would give managers time to sell assets in an orderly way and make liquidity-driven suspensions less likely, the regulator said, adding the proposals bring the UK into line with new international liquidity standards for open ended funds.
Existing funds would have two years to comply and must give investors at least one year’s notice when the new rules take effect.
Michelle Beck, director, markets, at the FCA, said: “Funds should be clear about whether they offer quick access or are built for longer-term investments like property. Our rules will help firms make that clearer and give the market more confidence to invest.”
The consultation closes on 11 December 2026.
