• Although daily traded, authorised funds did not, with the exception of Newstar, suspend in 2008, a number of funds for institutional funds and other unauthorised funds did suspend.

In responding to the lessons learnt from the 2008 crisis, many fund managers undertook a modernisation of the fund terms for their funds for institutional investors. A key element of this was the recognition that institutional investors were often paying a high cost for liquidity that they did not want or need. Significant steps were taken to reduce the level of

liquidity in some open-ended funds for institutional investors, for example by

lengthening the period between redemption notices being given and the

redeeming investor being payed out or by introducing “gating” mechanisms that restrict the amount that can be redeemed in a particular period. Funds with these characteristics are not currently available to retail investors.

It is important to understand the significant changes to the way in which retail investors invest. the structure of retail investment advice has changed very significantly since the financial crisis. The Retail Distribution Review (RDR) was a fundamental overhaul of financial services legislation for retail investment advice and came into effect on 1st January 2013.