The Financial Stability Board (FSB), chaired by Bank of England governor Mark Carney, has published a number of policy recommendations aimed at addressing "liquidity mismatches across investment funds", as part of a wider paper dealing with structural vulnerabilities in the asset management sector.
These include further scrutiny on whether certain asset classes are suitable for open-ended fund structures, widening the range of risk management tools available to fund managers at times of market stress, and potentially strengthening investor disclosure on liquidity issues. Widespread concerns around fund liquidity were raised again last year after a raft of open-ended property vehicles were temporarily suspended following June's Brexit vote, while regulators have also flagged concerns about bond fund liquidity in recent years. Fitch: Bond fund liquidity mismatch at all-time high ...
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