The Financial Conduct Authority (FCA) has begun to increase its checks on open-ended property funds as the likelihood of a no-deal Brexit on the 31 October rises, according to the Financial Times.
It has expanded the pool of funds that are subject to daily monitoring, the FT revealed, following a wave of outflows from property funds in recent months.
The FT, which cited "three people familiar with the situation", reported that both small and large property funds which suffered after the EU referendum in June 2016 must deliver daily cash flow updates to the regulator.
The Investment Association reported net retail outflows of £158m from its Property sectors in July this year.
The liquidity crisis in 2016 was prompted by investors pulling money out of open-ended property funds and saw Standard Life suspend dealing in its UK Real Estate fund.
This was followed by Aviva, M&G and Henderson, now Janus Henderson, with their property funds in the ensuing weeks.
By the end of the year, all those funds that had been gated were re-opened.
This week, the FCA is due to publish reforms designed to help property funds manage their liquidity.
This article was first published by Investment Week, a sister title to International Investment