Illiquid asset meaning

The LTAF is aimed at the UK institutional and wealth markets This enables the Aegon subsidiary to provide clients with exposure to private credit spanning a broad range of asset types. The scope includes corporate lending, fund financing, insured credit, renewables, and asset-backed finance. Jill Johnston, Head of Institutional Business at Aegon Asset Management, said in a statement that this asset class could potentially offer superior returns relative to public markets while also further enhancing diversification...

In response to a government consultation On 14 January 2025, the financial services consultancy stated that Chancellor Rachel Reeves’s drive to merge DC schemes into megafunds does not clearly show tangible advantages for members. The package of measures, unveiled by the Chancellor in November 2024, seeks to establish megafunds to unlock economies of scale by granting far greater freedom to channel retirement pots into illiquid holdings, including national infrastructure schemes and companies. The approach would shift focus towards investing directly in the economy rather than the prevailing habit of loading pension portfolios with gilts. Even so, Broadstone contended that ministers must set out fuller information explaining how this overarching long-term stated core policy aim of...

According to its yearly review of the UK’s fiscal prospects, the IMF noted that plans unveiled by Chancellor Rachel Reeves in November 2024 to merge defined contribution pensions into megafunds could deliver gains, including lower charges and broader exposure to varied asset classes. It cautioned, nonetheless, that care is needed to avoid unwanted consequences, such as a weakening of competition, as the IMF underlined. Ministers anticipate the reforms will produce larger vehicles that can harness economies of scale, with more scope to channel savers’ money into illiquid holdings, for example national infrastructure schemes and companies, over time. At the time, the government added that bringing together the highly fragmented Local Government Pension Scheme and defined contribution master trusts into megafunds might free up about £80bn for investment purposes...

This Practice Note examines non-UCITS retail schemes (NURS), namely authorised collective investment schemes (CIS) that are not undertakings for collective investment in transferable securities (UCITS). It covers their investment scope, key investor information documents (KIIDs), marketing, and NURS arranged as funds of alternative investment funds (FAIFs) or property authorised investment funds (PAIFs)... What is a NURS? Alongside UK-authorised UCITS, NURS represent another category of UK-authorised CIS. A NURS may be structured as an authorised unit trust (AUT), an open-ended investment company (OEIC), or an authorised contractual scheme (ACS). For more on AUTs, OEICs and ACSs, see Practice Notes: OEIC authorisation and winding-up, Authorised unit trusts (AUTs) and Taxation of authorised contractual schemes (ACSs)—overview. As each of these vehicles is open-ended, a NURS is invariably an open-ended authorised fund. Other types of non-UCITS schemes authorised by the Financial Conduct Authority (FCA) include the Qualified Investor Scheme (QIS), aimed at professional clients rather than retail investors, and the Long-Term Asset Fund (LTAF), intended to invest in illiquid and long-term assets....

This Practice Note sets out the key stages of a securitisation and complements other practical guidance on the topic. What is securitisation? Securitisation is a financing method that turns illiquid assets into tradable securities. It involves pooling income‑generating assets—such as loans, mortgages or credit card receivables—and repackaging them into interest‑bearing instruments for sale to investors. the originator (eg a financial institution) that creates the assets underpinning the securitisation; a special purpose vehicle, a separate legal entity used to isolate the originator’s financial risk; investment banks that structure the deal and the securities and manage regulatory compliance; investors who buy the securities. For an introduction to securitisation—its types, typical assets, key parties and documents—see Introductory guide to securitisation. For the UK and EU regimes, see Practice Notes: The UK securitisation regime and EU Securitisation Regulation—essentials. Securitisation is a complex process comprising a sequence of steps that convert illiquid underlying assets into marketable...

STOP PRESS: On 17 June 2025, the European Commission unveiled its long‑anticipated review of the EU Securitisation Framework, alongside a wide‑ranging legislative proposal to amend the EU Securitisation Regulation (Regulation (EU) 2017/2402), the EU Capital Requirements Regulation (Regulation (EU) No 575/2013), the EU Solvency II Delegated Regulation (Commission Delegated Regulation (EU) 2015/35) and the EU Liquidity Coverage Requirement Delegated Regulation (Commission Delegated Regulation (EU) 2015/61). Changes to the EU Securitisation Regulation span, among other points, risk retention, disclosure, STS on‑balance sheet securitisations and the definitions of public and private securitisation. Revisions to the Capital Requirements Regulation concern, among other matters, risk‑sensitive capital requirements, resilient securitisation positions and significant risk transfer tests. Further consultations and amendments are expected as the EU legislative process advances. Securitisation is a financing technique Securitisation enables investment in asset classes that are otherwise difficult to access — namely ‘illiquid’ assets such as bilateral loans and mortgages and other lending to natural persons. In its most familiar and basic structure, securitisation is a financing...