FCA: Five asset management trends threatening financial stability

In its annual review of the sector, published on Thursday (10 January), the FCA identified outsourcing, the growing use of sophisticated technology and liquidity levels as issues it is actively monitoring. Firstly, the regulator said the growing use of outsourcing to third-party technology providers means that should there be a failure of one of more of the "small number" of firms relied upon for these services, the proportion of assets which could potentially be affected by an IT failure is mounting and thereby increasing the likelihood of "significant harmful side effects". FCA conc...