The Financial Conduct Authority (FCA) has released its consultation paper on fund liquidity requirements in a bid to avoid past instances of "disorderly selling of assets" and "safeguard investors' interests".
The latest consultation in the FCA's end of year rush, it said effective liquidity risk management, particularly for open-ended funds, is vital to safeguard investors' interests, and supports orderly markets by reducing the chance of rapid fire selling by clients. In "extreme cases", this could have a contagion effect and "threaten financial stability" of other funds, the FCA cautioned. The work has in part been prompted by the International Organization for Securities Commissions' (IOSCO) revised recommendations for liquidity risk management for funds. The watchdog is requesting any ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
