The AIC responds to FCA Consultation Paper on open-ended property funds

The Association of Investment Companies (AIC) has responded to the FCA’s Consultation Paper, ‘Liquidity mismatch in authorised open-ended property funds’.

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), said: “Today proposals are a step in the right direction.  As the AIC recommended in its paper ‘Square peg in a round hole’, we are pleased to see that notice periods are a central element.

“However, the arbitrary 90/180 day period means that this will only help to reduce the problems arising from liquidity mismatches, not seek to eliminate them.  The FCA acknowledges this and suggests that managers might want to set longer periods.  However, in a world where daily redemption for open-ended property funds is the norm, how realistic is this?  Would it not be better to set the notice period at a year (as they do in Germany, where the sector is flourishing), but allow managers to reduce it when they can certify that this is appropriate?”

The AIC’s paper ‘Square peg in a round hole’ is available here.


Follow us on Twitter @AICPRESS


  1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 360 members and the industry has total assets of approximately £202bn.
  2. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
  3. To stop receiving AIC press releases, please contact the communications team.