ISAs and authorised open-ended property funds
We welcome views on the viability of retaining existing open-ended property funds in Individual Savings Accounts (ISA) in the event that such property funds no longer meet the eligibility criteria.
The Financial Conduct Authority (FCA) is currently consulting on a proposal to introduce a requirement that investors must provide up to 180 days’ notice before investments in open-ended property funds can be redeemed.
This runs contrary to the ISA legislation which requires account holders to be able to access the funds or transfer them to another ISA within 30 days of making an instruction to their account manager. Under current ISA legislation such property funds would no longer be eligible investments.
In order to mitigate the impact on ISA account holders and ISA managers, if the change is introduced, the government is considering whether to allow existing investments in open-ended property funds to remain within the ISA, while prohibiting ‘new’ investments in such funds.
The aim of this consultation is to gather views on the viability of such a proposal.
You can read the consultation document on this page.