Fund managers investing in hard-to-sell assets such as property should charge clients for withdrawing their cash in an attempt to discourage a rush for the exit, global financial regulators have recommended.

The Financial Stability Board and International Organization of Securities Commissions on Wednesday published guidance for asset managers, saying that investors who withdraw their money from an open-ended fund — a portfolio that allows investors to inject or withdraw cash on a regular basis — should not disadvantage clients choosing to remain in the fund.

The guidelines come as global authorities comb over the fallout from the coronavirus-led panic that swept across markets of March 2020, which forced investors to sell assets in a ‘dash-for-cash’ and exacerbated market instability.