The Association of Real Estate Property Funds has appointed consultant John Forbes to report on the property fund market following the flurry of funds that suspended trading after the EU referendum.
Suspension is a mechanism that is laid out under FCA regulation but the structure of open-ended retail funds has been criticised for allowing daily trading on illiquid assets and closing during times of crisis.
Forbes will produce a report, to be published in the first quarter of next year, to assess the impact of the referendum on the real estate market and whether improvements can be made.
The report’s focus will be the impact on clients but will also take into account the whole market including fund distributors, managers, valuers and other service providers.
It aims to identify areas where there might be areas of investor behaviour management during periods of market stress for which AREF or the regulator could establish best practice.
Independent report to probe crisis
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