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PIMFA WEEKLY NEWS BULLETIN | 3 May 2022 Dear Nigel,
Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read the latest news impacting you and your firm.
FCA CP22/08: Protecting Investors in Authorised Funds with Ukraine/Russian Assets
CP22/08 proposes that authorised funds with Ukraine, Russian and Belarussian assets affected/sanctioned as a result of the war should be able to hold these separately in new share classes ("side pockets"), with a view to enabling continued trading in the remaining unaffected assets of the fund and ending/avoiding fund suspensions.
Use of side pockets would be at the discretion of authorised fund managers consequently, while the FCA has some view of how many AFMs operate funds with potentially affected assets, there is no clear idea about how many funds might make use of this option.
The response period for CP22/08 is very short, ending on 16 May 2022. PIMFA has already engaged with the FCA on this issue through the UK Platform Group but would welcome the views of other PIMFA members on these proposals, particularly the Chapter 5 questions directed at ISA managers, advisers and other distributors.