On 1 August 2022, the FCA published a Consultation Paper 22/14 (‘‘CP22/14’’) on broadening retail access to the Long-Term Asset Fund (“LTAF”). The Financial Conduct Authority (“FCA”) in CP22/14 proposes among others to broaden the distribution of the LTAF to retail investors in the UK, to increase the level of exposure some authorised retail funds have on the LTAF, and it offers investors further adequate protection mechanisms. These key proposals aim to encourage investors to invest in long-term illiquid assets by removing unnecessary restrictions on LTAF that currently limit their investment choices and by providing them with opportunity to access suitable investments that match their attitude to risk, while offering them adequate protection…

next steps

Feedback on proposals to CP22/14 end on 10 October 2022, and the FCA will publish a final policy statement and final handbook rules early in 2023.

Firms that wish to comment on the proposals can do so by filling out the form located on the FCA website.

To view the CP22/14 consultation paper click here.

For more information, and any guidance or advice on the LTAF Cleveland & Co External in-house counsel™, your specialist outsourced legal team, are here to help.

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