HMRC weighs ISA ban on 'new' property fund investments

Response to FCA's planned 180-day notice period

Mike Sheen
clock • 2 min read

ISA investors could be banned from making new investments to open-ended property funds as part of the Government's response to Financial Conduct Authority (FCA) proposals to resolve the "liquidity mismatch" at the heart of the vehicles.

In August, the FCA proposed a series of measures designed to prevent frequent suspensions across the open-ended property fund market, including the implementation of a 180-day notice period for consumers redeeming investments. The proposals are problematic for investors using ISAs, the legislation of 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. As a result, HM Revenue & Customs (HMRC) revealed on Wednesday (28 October) that the Government is "considering the idea of allow...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Law, not likes: Cracking down on social media financial promotions

Law, not likes: Cracking down on social media financial promotions

‘Every individual social post or communication must comply with the rules’

Sarah Wylie and Owen McLennan
clock 28 October 2024 • 4 min read
How Labour can support investment management vibrancy

How Labour can support investment management vibrancy

The formation of a new government – now just over 100 days’ old – has brightened the spotlight on UK financial services regulation, writes IIMI CEO Dani Hristova

Dani Hristova
clock 28 October 2024 • 4 min read
Number of non-financial misconduct reports in the City spikes in three years

Number of non-financial misconduct reports in the City spikes in three years

FCA reveals survey results

Cristian Angeloni
clock 25 October 2024 • 4 min read