FCA consults on widening access to the LTAF

The FCA has outlined proposals to market the Long Term Asset Fund (LTAF) to a wider group of retail investors and pension schemes, whilst also introducing enhanced investor protections. Highlights include plans to:

  • treat the LTAF as a restricted mass market investment, in line with FCA’s policy statement on strengthening its financial promotion rules for high-risk investments. This will extend LTAF access to a wider range of retail investors and ensure that investors understand the risks involved;
  • increase the amount of exposure that some other authorised retail funds can have to the LTAF;
  • align some LTAF rules with the investor protection rules that apply to other retail authorised funds; and
  • remove the 35% restrictions on illiquid assets in unit-linked products, where the investor is a qualifying default pension scheme.

The consultation closes on 10 October 2022 and FCA intends to publish its final policy statement and Handbook rules in early 2023.

Lucy Hadrill