FCA Policy Statement PS19/24 – Illiquid assets and open-ended funds

FCA Policy Statement PS19/24: Illiquid assets and open-ended funds


  • CP1 PS19/24: Illiquid assets and open-ended funds and feedback to Consultation Paper CP18/27
  • Published by the FCA on 30 September 2019
  • This Policy Statement summarises the feedback received to the FCA’s consultation on illiquid assets and open-ended funds.
  • It sets out the FCA’s final rules relating to disclosure, liquidity management and suspension of dealing, as originally proposed in CP18/27.


The FCA is seeking to reduce the potential for harm to investors in funds that hold inherently illiquid assets, such as property, particularly under stressed market conditions.

Open-ended funds that invest in inherently illiquid assets can encounter difficulties if many investors simultaneously try to withdraw their money at short notice.

The FCA is changing its Handbook in 3 broad areas:

  • Suspension of dealing in units
  • Improving the quality of liquidity risk management
  • Increased disclosure

The measures are focused on non-UCITS retail schemes (NURSs), as these are a key type of fund which can invest in inherently illiquid assets, and in which retail investors can invest.

Those impacted are anyone with an interest in open-ended funds, in particular NURSs, that invest in inherently illiquid assets, such as property. This includes fund managers, depositaries, ancillary service providers, intermediaries and investors.

The remedies also have implications for those communicating financial promotions of funds investing mainly in illiquid assets to retail clients.

Timeline with relevant dates to be logged on regulatory calendar

  • Policy Statement published on 30 September 2019
  • Firms must comply with the rules and guidance by 30 September 2020

Next steps

Prepare to comply with these Handbook changes.

Fund managers and depositaries may wish to consider whether it would be in customers’ interests to adopt some of the measures, such as increased disclosure and improved liquidity management, ahead of the coming into force date, where these do not conflict with the rules applicable until that date.

Click here to contact our experts

Subscribe to Updates

Receive regular updates from our expert consultants as they provide clarification and guidance on issues impacting your organisation.

Subscribe >>