Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the increasing number of Long Term Asset Funds and the risks they pose to investors, including forced sales or the inability to redeem investments, due to their holdings of illiquid investments.

The Government wants to make sure that those who have the ability to put away money for the long-term can do so. The Long-Term Asset Fund (LTAF) provides investors with the opportunity to invest in long-term alternative assets, such as venture capital, private equity, real estate and infrastructure, that can offer higher returns in exchange for limited liquidity.

The Financial Conduct Authority have designed robust governance requirements for the LTAF, so investors who understand the risks of investing in long‑term less liquid assets are able to invest with confidence. Where a firm markets an LTAF to a retail investor, the firm must provide appropriate risk warnings and conduct an appropriateness assessment.