LONDON, July 20 (Reuters) - Asset managers did not plan properly or have clear procedures for valuing their property funds under stressed market conditions like those in the aftermath of Britain’s June 2016 vote to leave the European Union, the UK’s markets watchdog said on Thursday.
Several property funds were suspended after the vote as a wave of investors tried to pull their money amid speculation that Brexit would hit commercial property prices.
The Financial Conduct Authority (FCA) examined the sector’s responses and published its findings on Thursday.
“In general, authorised fund managers did not adequately plan, or have clear policies and procedures, for valuing their property portfolios under stressed market conditions,” the FCA said.
“We found that the use of suspensions, deferrals and other liquidity management tools were effective in preventing market uncertainty from escalating further,” the FCA said.
Firms could be clearer in their communications, including to end-customers, following significant market events, it added. (Reporting by Huw Jones; Editing by Rachel Armstrong)