FCA Proposes 90-Day Notice Period for Retail Investment Funds

The UK Financial Conduct Authority (FCA) has set out clearer expectations for asset managers regarding long-term investments, such as property. Under new proposals, investors would need to give 90 days' notice to access their funds, providing greater certainty that they will receive their money.

Currently, some of these funds allow daily withdrawals with no notice period. During periods of stress or volatility, there is a risk that some funds may suspend all payments due to a lack of available cash. Some funds also hold extra cash, leaving less invested in their intended assets. Rushed sales can lower prices, harm investors who stay invested, and put pressure on markets.

The FCA said the new notice period would give managers time to sell assets in an orderly way and make liquidity-driven suspensions less likely. For investors, this means the fund should be clearer from the start about how quickly they can get their money back and whether the fund is right for their needs.

Existing funds would have two years to comply and must give investors at least one year's notice. The FCA is asking for feedback on the proposals by 11 December 2026.