UNITED KINGDOM: FCA Statement on Property Fund Suspensions

Wednesday March 18 2020

The FCA announced that certain Standing Independent Valuers have determined that there is currently material uncertainty over the value of commercial real estate (CRE).

In such situations, a fair and reasonable valuation of CRE funds cannot be established. As a result, some managers of open-ended CRE funds have temporarily suspended dealing in units of these funds and others are likely to follow for the same reason.

Suspensions can be used by managers of open-ended funds, in line with their obligations under applicable regulations. In these circumstances, suspension is likely to be in the best interests of fund investors.

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