Hundreds of thousands of small investors in property funds will have their holdings temporarily frozen in the event of a shock to the market that leads to material uncertainty about the value of shops and office blocks, regulators have ruled.
The Financial Conduct Authority proposed new rules yesterday designed to strike a fairer balance between investors wanting to redeem their holdings and those wanting to stick out a sharp downturn in the commercial property market.
The move comes after confusion following the Brexit referendum in 2016, when some fund management companies closed property funds to redemption, while others applied sharp price reductions.
