Watchdog Eyes Daily Redemptions As Fund Suspensions Rise

Law360, London (March 20, 2020, 4:16 PM GMT) -- Recent property fund suspensions, including those in response to the coronavirus outbreak, have raised “legitimate questions” about daily redemption promises by funds that invest in illiquid assets, according to a senior regulator.

Edwin Schooling Latter, markets policy director at the Financial Conduct Authority, on Thursday warned that open-ended funds create material risks if they promise investors the opportunity to take cash out daily but invest in assets that cannot be liquidated in a day without losing value.

Property investment funds, including those run by Aberdeen Standard Investments, Aviva Investors and asset manager Janus Henderson, were suspended this week in response to the...

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