“We would be interested to know how many people in frozen property funds were there because they took ‘advice.’
“If the regulator is to push ahead with a LTAF, it must also protect consumers’ interests. Passing the buck onto sophisticated investors and advisers strikes the wrong chord.”
Ryan Hughes, head of active portfolios at AJ Bell, said that the delay to the conclusion of the consultation and linking with the LTAF consultation shows how hard property asset managers have lobbied for the regulator to take a different approach.
“The simple fact that two property funds remain suspended and have been for over a year, while many others hold more than 20 per cent cash to meet potential short-term redemptions still implies that the current structure needs addressing sooner rather than later."