In the wake of Brexit, Canada Life has decided to stop fulfilling requests for withdrawals from its UK property funds.
In a message posted to its British web site yesterday, Canada Life announced that it had decided to suspend withdrawals from its property funds because of "ongoing uncertainty" around the pricing of commercial property assets following the UK's vote to leave the European Union.
Protecting the interests of all investors
"Deferring requests to withdraw allows us to protect the interests of all investors in the property fund, including those who plan to remain invested for the medium to long term," reads the message. "The deferral can be for up to six months, enabling the funds to ensure property values reflect market conditions."
As a result, investors will not be able to cash in or switch units out of the following British funds:
- Canlife Property Life Fund
- Canlife Property Pension Fund
- Canlife UK Property Life Fund
- Canlife UK Property Pension Fund
Canada Life has posted a series of answers to frequently asked questions about the freeze. For example, in response to clients who say they were not aware that withdrawals could be suspended, and ask why Canada Life is allowed to implement these measures, the response reads: "At the time the policy was sold to you, you should have received a key features document and other product information that would have explained these unique risks of investing into a commercial property fund. These should also have been explained to you by your professional adviser."