This week's regulatory landscape for UK retail investment advisers is dominated by the FCA's consultation (CP26/35) on fair redemption terms for authorised funds investing in illiquid assets. The proposals introduce clearer redemption expectations and minimum notice periods for NURS holding illiquid assets like property, requiring advisers to monitor potential impacts on client liquidity, suitability, and portfolio planning.
News Release · 2026-10-08T12:03:00.000Z
The FCA has announced proposed rules requiring asset managers of non-UCITS retail schemes (NURS) holding inherently illiquid assets, such as property, to implement minimum notice periods for redemptions (such as 90 days). This aims to reduce the risk of fund suspensions during market stress and align with international liquidity standards. A consultation on CP26/35 is open until 11 December 2026.
Relevance to advice: Directly relevant to retail investment advice firms and advisers recommending NURS funds with illiquid assets or advising clients on liquidity terms within pensions, SIPPs, and investment portfolios.
Read the publication →Consultation Paper · 2026-10-08T12:02:00.000Z
The FCA is consulting on changes to fund rules to ensure redemption terms for authorised funds investing in illiquid assets reflect actual asset sale timeframes. The proposals directly impact fund distributors, financial advisers, and SIPP operators dealing with NURS funds holding property or infrastructure.
Relevance to advice: Directly relevant to financial advisers and investment consultants who recommend illiquid funds or NURS to retail clients, as well as those evaluating liquidity and suitability for client portfolios.
Action: The firm may wish to review the consultation paper (CP26/35), assess current client exposure to affected NURS funds, and consider submitting feedback to the FCA before the 11 December 2026 deadline.
Read the publication →This digest is an informational summary of regulatory developments. It is not compliance advice. Verify each item against the source publication before acting.