BoE deputy governor flags scrutiny of fund liquidity promise

Concerns about fund fire sale

Katrina Lloyd
clock • 2 min read

Bank of England deputy governor financial stability Sir Jon Cunliffe has reiterated the bank's interest in how the asset management sector would cope with a possible fund fire sale at a time of market stress, and how individual funds manage liquidity.

In a speech to the Association for Financial Markets in Europe last week on the challenges for financial markets, Cunliffe (pictured) highlighted sectors that have not generated risk in the past can change their profile quickly. "In this respect I would mention the explosive growth since the crisis in the size and importance of asset managers and in the funds they manage, especially open-ended investment funds," he said.  Cunliffe added funds have generally been stable in times of stress but they have grown markedly since 2008 and "with the search for yield, have become active in mo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Bank of England meets expectations and cuts rates to 4%

Bank of England meets expectations and cuts rates to 4%

Lowest level in two and a half years

Isabel Baxter
clock 07 August 2025 • 4 min read
Think tank warns UK fiscal hole could surpass £50bn by 2030

Think tank warns UK fiscal hole could surpass £50bn by 2030

Government not on track to meet ‘stability rule’

Sorin Dojan
clock 06 August 2025 • 1 min read
Chancellor Khalaf has a plan to make our economy boom

Chancellor Khalaf has a plan to make our economy boom

'So, Sir Keir, if you're reading, I do genuinely hope Rachel is doing okay. And my number's still the same. So, you know, call me'

Laith Khalaf
clock 25 July 2025 • 5 min read