Schroders to launch UK's first LTAF following FCA approval

clock • 2 min read

The Financial Conduct Authority (FCA) has authorised Schroders Capital to launch the first long term asset fund (LTAF).

The regulator explained that the LTAF is a new category of open-ended authorised funds, which are designed to invest in long-term assets. The launch was supported by the creation of a new regulatory regime that came into effect in 2021. The FCA worked with the Bank of England, HM Treasury and wider industry to make sure that longer-term, less liquid assets can flourish and investors can understand the risks associated with LTAFs. The ability to invest in illiquid assets is important to support economic growth and the transition to a low carbon economy, the watchdog said, but should...

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