The FCA is consulting on making sure authorised investment funds can invest in private markets such as real estate, infrastructure, private credit and private equity, while ensuring investor protection. It is proposing:
- to allow depositories of authorised AIFs managed by full scope AIFMs to delegate some safekeeping functions in respect of some private market assets types to certain third parties;
- to allow delegation of the safekeeping function for “non-custodial” private market asset types to affiliates of the fund manager;
- to clarify some elements of the authorised fund registration function and how CASS 6 applies to depositories; and
- replace its current modification by consent on guarantees and indemnities with a permanent rule change.
It asks for comments by 9 July.