Brandeaux: FCA’s Ucis ban contributed to fund closure decision

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Brandeaux has told investors that the suspension of its entire fund range was partially caused by watchdogs’ moves to discourage advisers from marketing non-regulated funds.

Yesterday, the group contacted investors to inform them that it was suspending its eight specialist collective investment funds, including its £1bn Brandeaux Student Accommodation fund, following an increase in investor redemption requests and problems with property market liquidity.

In the update to investors, the firm says: “There continue to be significant challenges in terms of liquidity for open ended property funds such as the Brandeaux funds.

“One example of these challenges continues to be the impact of PRA and FCA regulatory initiatives aimed at discouraging IFAs from marketing non PRA and FCA regulated funds.

“The directors believe that this together with other factors including the continuing global economic uncertainty has led to the recent increase in redemption requests and fewer subscriptions received by the Brandeaux funds.

Last month, the FCA issued its final guidance on the banning of the promotion of unregulated collective investment schemes to most UK retail investors. Specialist collective investment funds are among the products included in this ban.

Brandeaux chief executive Roger Boyland and chairman Kay Brandeaux also told investors that the funds are “all performing positively”.

“There is no basis for investors to ‘panic’ or to worry that they have ‘lost all their money’. All Brandeaux funds remain completely solvent and can meet all of their operational cash needs,” they added.