On 12 December 2018, the FCA published a discussion paper, DP18/10, which explores how UK authorised funds can be used to invest in patient capital. 

The discussion paper sets out the relevant authorised funds rules, and outlines the existing opportunities to invest in patient capital. It invites feedback to help identify the barriers to investment in patient capital through authorised funds and how such barriers can be overcome.

The discussion paper does not propose any changes to the authorised fund rules. Instead, the FCA will consider responses and consult more widely with industry stakeholders to come to an informed view on whether any rule changes are necessary.

Comments are requested by 28 February 2019. The FCA will publish a feedback statement to set out the feedback received and next steps in 2019. Any proposals for change will be subject to further consultation in due course.

The FCA is also consulting on proposed amendments of the Conduct of Business sourcebook (COBS) 21.3 permitted links rules, which also relates to patient capital and should be read in conjunction with this discussion paper, see item above.