Funds investing in inherently illiquid assets ('FIIA')
FCA CP: Funds investing in inherently illiquid assets (‘FIIA’)
Following the consultation paper CP18/27, The FCA has outlined through policy statement PS19/24, the rules managers of non-UCITS retail schemes investing in illiquid assets must focus on. The new rules come into force on 30th September 2020. Fund managers, it is important also to take note that although these rules are for now focused only on NURS, chapter 7 of the policy statement confirms that the FCA is considering wider matters, such as potential remedies to other investment frameworks, UCITS.
Producing and monitoring fund liquidity exposures can be a costly and time-consuming task, let alone analysing the impact of both stressed asset liquidity and stressed redemption levels.
At Arkus, we have a cost-effective liquidity risk management reporting and management solution. This is backed up by a dedicated team of risk experts who work to ensure that our clients can produce the independent daily, or when required, robust liquidity risk management framework to monitor portfolios with both illiquid/liquid assets.