UK Funds Review
We argue that the Government should:
- Recognise that the present range of UK authorised funds, though well-established in the UK market, is unlikely to attract global investors. There are improvements that could be made to these funds over time in consultation with the industry;
- Introduce a professional investor fund regime for open-ended and closed-ended fund structures (including associated asset holding companies and securitisation companies) which would provide a competitor to EU fund regimes and offer a potential alternative to offshore fund jurisdictions; and
- Develop the proposed long-term asset fund (LTAF) to provide an effective vehicle for defined contribution pension schemes and retail investors to invest in illiquid markets.
It is understood HM Treasury will determine how to take any proposals forward with a view to further consultations later this year.
(Last updated: 29 June 2021)