View more on these topics

FCA moves to daily supervision of property funds

The FCA has stepped up the frequency of the information it collects on property funds after investors drove hundreds of million in outflows over December, according to reports.

The Financial Times says three people briefed on the matter have told the paper that, amid fears of another liquidity crunch on Brexit uncertainty and £315m in withdrawals, the watchdog is requesting daily updates in heightened monotoring of outflows.

“Gating” of property funds was a feature of 2016’s investment market, and has been brought into starker relief by recent stock market falls.

Suspensions hit giants of the investment market, from Aviva and Columbia Threadneedle, to M&G and Standard Life Investments, brought of a liquidity mismatch between daily trading offered and the time it takes to sell property assets within funds.

Aviva Investors property boss warns shutting funds can lead to ‘perverse outcomes’

The FT says that one person briefed on the matter tells it that the FCA’s oversight rose in line with political uncertainty, as it came around the same time as prime minister Theresa May postponed a key parliamentary Brexit vote in December.

Fidelity International investment director for real estate at Adrian Benedict tells the paper: “With the no-deal Brexit deadline looming fast, any regulator is going to be thinking about ‘What was the last section of the economy that was most exposed?’ The fact that they had outflows in the back end of last year was a signal to the regulator to monitor it.”

The FCA says: “As you would expect, we regularly monitor markets and funds. We are also in frequent contact with firms and continue to engage with them on a wide range of issues.”

Recommended

3

One million savers hit by MPAA since introduction

More than one million over-55s have been subject to the money purchase annual allowance since it came into force in 2015. For individuals wishing to dip into their retirement pots using the pension freedom rules, tax relief is available on contributions up to £40,000 a year, but once they make a flexible withdrawal, they instead […]

3

Quilter director Porteous exits business

Quilter retail customer solutions director John Porteous has left the company just over a year from when he took on the role. Porteous (pictured) joined Quilter in September 2017, after two and a half years at national advice firm Towry. Towry was acquired by Tilney in April 2016 and Porteous was subsequently appointed head of […]

Pensions company wins appeal over misleading advert

The Advertising Standards Authority has quashed a complaint which alleged pensions and technology company Smart Pension mislead consumers with its advertising material. The ASA initially ruled in favour of a complainant last October, finding Smart Pension’s language “threatening” but announced it had reversed the decision today. The complaint concerns a letter sent to new firms […]

4

FSCS levy hike backlash throws doubt on FCA supervisory control

The FCA may not have taken enough stringent analysis to determine why its incoming £240m levy for the pension and investment intermediation class is necessary, says Pimfa. The adviser trade body has spoken out against the 2019/20 levy proposed this week in the Financial Services Compensation Scheme’s budget. The levy – set to cost advisers […]

trevor greetham

Multi asset market views

With the world economy continuing to strengthen, Trevor Greetham, Head of Multi Asset at RLAM provides an update on the positioning of our multi asset funds and the Investment Clock. Watch the video here Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com