UK Long Term Asset Funds - What You Need to Know

Introduction

The long-term asset fund (‘LTAF’) is a UK fund structure designed to facilitate long-term investment into illiquid assets including real estate, loans and infrastructure.

The first LTAFs were authorised in the spring of 2023.

LTAFs can take a number of different legal forms.

Initially the LTAFs were restricted to professional investors, including defined contribution (‘DC’) pension schemes, certified sophisticated investors and certified high net worth investors, known as ‘limited protection LTAF investors’.

However, reforms to the LTAF have extended distribution to mass market retail, self-select DC pension schemes and self-invested personal pensions (‘SIPPs’).

The UK’s LTAF is broadly equivalent to the EU Long-Term Investment Fund (‘ELTIF’) in its aims, but significantly different in its operation.

This webinar will consider the practicalities of launching an LTAF and equip those attending with an understanding of the legal framework and issues involved.

The webinar is suitable for lawyers, FCA regulated persons and other professionals working in the financial services industry.

What You Will Learn

The course will cover:

• The basic, non-retail LTAF:
• Basis of regime - governance and disclosure
• Purpose
• Investment powers:
• Loans
• Second schemes
• Borrowing
• Redemptions and subscriptions
• Reporting
• Role of the depositary
• Permitted links
• Eligible investors
• ‘Retailisation’ - the retail LTAF
• Broader distribution including where the LTAF is structured as an ACS
• Retail consumer process and the Consumer Duty
• Additional investor protection rules
• FCA application
• Application of the Financial Services Compensation Scheme (‘FSCS’) to LTAFs