{
  "id": 12902240,
  "title": "FCA eyes 90-day redemption rule on illiquid funds to end mass withdrawals",
  "url": "https://urgent.news/2026/10/08/fca-eyes-90-day-redemption-rule-on-illiquid-funds-to-end-mass",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T16:05:24.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/fca-eyes-90-day-redemption-rule-on-illiquid-funds-to-end-mass-withdrawals/"
  },
  "original_language": "en",
  "account": "The UK's Financial Conduct Authority (FCA) has proposed a minimum 90-day notice period for investors looking to withdraw from long-term investment funds holding illiquid assets. This change aims to prevent mass withdrawals during market volatility, which can lead to funds running out of liquid capital and being forced to suspend operations. Currently, funds allow clients to take money out daily with no notice period, making them vulnerable during turbulent market conditions. This proposed rule would require funds to process redemptions only once per month, with a combined notice and settlement period not exceeding 185 days. Michelle Beck, the FCA's director of markets, emphasized that funds must clearly communicate whether they offer quick access or are designed for longer-term investments. The proposal comes in light of the Woodford legacy, where the collapse of fund manager Neil Woodford's Woodford Equity Income Fund led to the suspension of the fund in June 2019. The suspension trapped approximately £3.7 billion in hard-to-sell assets and highlighted the issue of unreasonable and inappropriate investment decisions, with only eight percent of investments able to be sold within seven days by the time of the suspension.",
  "summary": "The UK’s financial watchdog has proposed changes to retail investment fund rules in a bid to reduce the risk of rushed asset sales during market volatility. The Financial Conduct Authority (FCA) floated a minimum 90-day notice period for investors withdrawing from long-term investment funds holding illiquid assets such as infrastructure and private equity, in its [...]",
  "key_points": [
    "FCA proposes 90-day notice period for illiquid fund withdrawals.",
    "Prevents mass withdrawals during market volatility.",
    "Funds must clearly communicate access options to clients."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}