Plans to ban open-ended property funds from being included in Isas could lead to their demise.
Under existing rules, open-ended property funds would no longer be eligible for Isas if notice periods were introduced for investors wishing to sell their holdings.
The Financial Conduct Authority has been consulting on whether to bring in notice periods of 180 days for property funds.
It has been claimed that between 30% and 40% of investments in property funds are held via stocks and shares Isas, meaning that the loss of Isa eligibility would bring the viability of property funds into question.
The FCA said that only a few respondents had agreed fully with its proposals.
