UK FCA to impose 3-month redemption notice on property funds to curb liquidity risk

The UK Financial Conduct Authority is proposing a mandatory three-month notice period for redemptions from property funds holding illiquid assets, aiming to prevent the suspension chaos seen during past market turmoil. The measure would restrict immediate investor access, shifting liquidity risk management to a notice-based model. This marks a regulatory tightening of open-ended fund structures, potentially reducing redemption flexibility and impacting investor confidence in UK property funds.