On September 6, 2024, the FCA released its quarterly consultation, which includes a proposal to widen access to Long-Term Asset Funds (LTAFs) by amending the rules for Non-UCITS Retail Schemes (NURS). This proposal aims to address the barriers currently limiting NURS from investing in LTAFs, thereby expanding investment opportunities for retail investors and pension schemes in long-term, illiquid assets.

Simplification of Second Scheme Rules:

• The FCA proposes amending rules to exempt LTAFs from the 15% limit on investments in other CIS, allowing NURSs to invest in LTAFs without restrictions.

Maintaining the 20% Limit on LTAF Exposure:

• Despite the changes, the 20% cap on a NURS’s portfolio exposure to LTAFs remains unchanged. This is to ensure that investments in LTAFs do not exceed the agreed limit.

Guardrails for Investor Protection:

• The FCA also proposes adding provisions to ensure that NURS managers investing in LTAFs can meet redemption obligations. These provisions aim to mitigate the liquidity risk associated with LTAFs.