FCA cautions property funds amid post-Brexit panic

The Financial Conduct Authority issued guidance after a number of funds temporarily suspended trading in their property portfolios and feeder funds. Investors took fright after the United Kingdom’s vote to leave the European Union and assumed that commercial property prices would fall – this precipitated a surge in requests to withdraw funds.



At least eight players, which included Aberdeen Asset Management and Standard Life, froze their funds to prevent a rout by investors anxious for redemptions. An added fear was that many companies, including those that suspended funds, operate other products which are invested in the funds.