REGULATION · UK
FCA consults on fair redemption terms for funds investing in illiquid assets
The FCA issued Consultation Paper CP26/35 addressing redemption fairness for authorised funds holding illiquid assets, aiming to protect investors from valuation and timing mismatches.
WHY IT MATTERS
Addresses post-2020 gilt/LDI risk; forces funds and platforms to clarify liquidity-mismatch buffers and may require gate/side-pocket rules, reshaping fund structures and fee models.
Source: FCA · 2026-10-08