On 9 March 2023, the FCA announced it had authorised the first Long Term Asset Fund (LTAF). The LTAF will be managed by Schroders Capital.
In its announcement, the FCA said:
“The FCA has worked with the Bank of England, the Treasury and industry, through the Productive Finance Working Group to create an environment where investment in longer-term, less liquid assets, by investors who understand the risks, can flourish. The ability to invest in illiquid assets, through appropriately designed and managed investment vehicles is important for supporting economic growth and the transition to a low carbon economy.
The FCA is currently inviting views on ideas about how to further improve asset management regulation with a more modern and tailored regime, to make sure the regime takes account of developments in technology and supports innovation.”
Further information regarding the discussion paper on making improvements to the UK asset management regime, which the FCA referenced, can be found here. For further UK funds and financial services regulatory updates, please visit the Burges Salmon blog.
We made these rules to create an environment where investors that wish to invest in productive finance assets can more easily do so. 'It was for market participants to make this a reality and it is good to see this product innovation now taking place. (Sarah Pritchard, Executive Director of Supervision, Policy and Competition – Markets at the FCA )