The Financial Conduct Authority (FCA) is exploring the use of side pockets for funds, allowing for the disposal of Russian and Belarussian assets.
The regulator is consulting on their "exceptional use" to overcome "significant practical" challenges posed by Russian and Belarussian assets that are hard to value or sell. Side pockets could allow new investors to enter such funds without risk of Russian exposure, allowing pre-existing investors to redeem while Russian assets are kept separate. Some suspended funds - like the £236.7m Liontrust Russia Fund - may be able to use side pockets as a way out of suspension. The regulator is consulting on their use, as well as when they would be available from. The FCA has also warned ...
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