Asset managers could be allowed to "ring-fence" assets which have become untradable due to Russia's invasion of Ukraine, Britain's Financial Conduct Authority said on Thursday.

"We want these funds to operate fairly and efficiently in the interests of all investors. So we propose allowing AFMs to use separate new classes of units (side pockets) to hold affected investments," the FCA said in a statement.

(Reporting by Huw Jones; Editing by Catherine Evans)