Consultation outcome

ISAs and authorised open-ended property funds

From:: HM Revenue & Customs
Published: 28 October 2020
Last updated: 29 April 2024 — See all updates

Detail of outcome

The Individual Savings Account (Amendment) Regulations 2024 were amended (effective 6th April 2024) to allow certain investments to be held in an Innovative Finance ISA where those investments are subject to a notice period that means they cannot be held in a stocks and shares ISA. Funds which would qualify for a stocks and shares ISA but cannot be liquidated within 30 days, are eligible to be held in an innovative finance ISA, including Long Term Asset Funds, Open Ended Property Funds (when introduced), and similar investments.

The underlying fund must follow the rules set out within the stocks and shares ISA guidance, with the exception of the liquidity rules, where the fund must be able to be liquidated within 31 to 185 days of the investor’s request.

The Individual Savings Account (Amendment) Regulations 2024 (legislation.gov.uk)

Original consultation

Consultation description

The Financial Conduct Authority (FCA) is currently consulting on a proposal to introduce a requirement that investors must provide up to 180 days’ notice before investments in open-ended property funds can be redeemed.

This runs contrary to the ISA legislation which requires account holders to be able to access the funds or transfer them to another ISA within 30 days of making an instruction to their account manager. Under current ISA legislation such property funds would no longer be eligible investments.

In order to mitigate the impact on ISA account holders and ISA managers, if the change is introduced, the government is considering whether to allow existing investments in open-ended property funds to remain within the ISA, while prohibiting ‘new’ investments in such funds.

The aim of this consultation is to gather views on the viability of such a proposal.

You can read the consultation document on this page.

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