FCA consults on retail access to LTAFs

The Financial Conduct Authority (FCA) has published a consultation paper, which proposes draft rules to enable wider retail access to the Long Term Asset Fund (LTAF).

According to the regulator, there is a risk retail investors may be overly reassured by the LTAF’s authorised status, or not fully understand the illiquid nature and corresponding risk of the underlying assets.

Therefore, the FCA has proposed treating the LTAF as a Restricted Mass Market Investment (RMMI), to enable a broader range of retail investors to access LTAFs, while providing further investor protection and ensuring they understand the risks involved.

“Given the regulatory standards LTAFs must meet, and following consultation feedback, we do not want to impose unnecessary restrictions on where consumers can invest,” stated...