The Financial Conduct Authority has called for better clarity for clients invested in UCITS funds holding more illiquid assets – the structure used by the beleaguered Woodford Equity Income Fund (WEIF).

A policy statement released by the FCA today which outlined rules for “non-UCITS retail schemes” (NURS) also included a section discussing the fallout from the WEIF trading suspension, which came into force on 3 June and is expected to continue until at least December.

“The WEIF events [indicate] that many retail investors were not aware of, or did not appear to understand, the liquidity risk to which they were e...