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<p>Investment fund suspensions arise when demand for redemptions exceeds the liquidity
in the fund. To service these redemptions, a fund may need to sell assets at a depressed
market value, to the detriment of investors, while selling only the liquid assets
could result in a fund breaching its investment mandate and possibly FCA rules. The
Government recognises that fund suspensions can thereby act to protect the interests
of investors in the fund.</p><p> </p><p>The Financial Conduct Authority (FCA) is responsible
for the ongoing supervision and regulation of the UK’s financial services sector,
including investment funds. The FCA’s detailed rule book ensures that firms treat
their customer fairly, and its robust supervision and enforcement powers mean it can,
and does, take action where a firm breaches the rules. Whether or not there has been
any breach of regulatory requirements relating to UK funds and any possible investigation
would be a matter for the FCA.</p><p> </p><p>In circumstances where an investment
fund is domiciled outside of the UK, the supervision of its compliance with applicable
rules, such as the UCITS Directive, is a matter for the home state regulator.</p><p>
</p><p>If individuals have concerns about their investments, they should speak to
their advisor or platform. If individuals have purchased units in a fund directly,
they should speak with the relevant firm.</p>
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