FCA has published its final rules on giving a wider group of retail investors and defined contribution pension schemes access to Long Term Asset Funds (LTAF).
The rules recategorise a unit in an LTAF from a Non-Mass Market Investment (NMMI) to a Restricted Mass Market Investment (RMMI). Distribution will be extended so that mass market retail investors, as well as self-select defined contribution pension schemes and Self-Invested Personal Pensions (SIPPs), will be able to invest in an LTAF.
LTAFs will be subject to additional protections under FCA’s high risk investment framework, including risk warnings and customer assessments.
Chapter 4 of the policy statement consults on whether to extend FSCS cover to the LTAF. FCA asks for comments by 10 August 2023.