FCA consults on closed-end fund changes

The FCA is consulting on changing the Listing Rules in respect of closed-ended investment funds. The proposals focus on conflicts management and aim to ensure that its rules apply consistently in a variety of scenarios. Specifically, it wants to:

• make sure the protections that apply to existing arrangements will continue to apply when a new manager is appointed;
• recognise the association between a director and a substantial shareholder that proposed their appointment; and
• recognise the conflict where a substantial shareholder is also an investment manager that votes on material changes to investment policies.

Consultation closes on 14 August and the FCA would make final rules by the end of the year.