Sunday, July 10, 2016

Bank of England Considering Restrictions On Withdrawals From Property Funds

The Sunday Telegraph reports The Bank of England considering requiring funds to ask investors to give a notice period of 30 days to six months for redemptions, or to hold more liquid assets to meet withdrawals, such as cash or shares and bonds in property-related companies.

More than six British property funds suspended withdrawals last week in the wake of redemptions after the June 23 Brexit vote, which caused a stampede of redemption requests,

The question is, of course, if the funds have already suspended withdrawals based on the participation terms of the funds, why does the BOE have to get involved?


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