A recent FCA consultation, Consultation Paper CP22/14, could see Long Term Asset Funds (LTAFs) marketed to a wider group of retail investors and schemes in the future. The window for feedback on the consultation closed on 10 October 2022, and the FCA is now expected to confirm final rules early next year.
If adopted, the proposals in the FCA consultation could give consumers access to non‑traditional investments, which they could use to diversify their portfolios and generate higher returns, while still benefiting from strong consumer protection.
The FCA’s proposals include broadening the distribution of LTAFs to retail investors, with certain restrictions. It is proposing treating LTAFs as a Restricted Mass Market Investment. The proposals would also increase the level of exposure some other authorised retail funds (including Funds of Alternative Investment Funds) can have to LTAFs.