BoE asks FCA to do more work on fund liquidity


The Bank of England's Financial Policy Committee (FPC) has asked for more detail on how fund groups are guarding against liquidity risks, as policymakers step up their scrutiny of asset managers.

The BoE's bi-annual Financial Stability Report, released today, gives more details of how the central bank's initiative to examine funds' failsafe policies will proceed in the coming months. It follows the FPC's March decision to investigate how UK fund groups are managing the liquidity of their funds in "normal and stressed conditions". An interim report was delivered to the FPC last month; the Committee said it showed that "most funds" undertake stress testing but has asked for a more in-depth examination of these processes. Carney fires warning to fund groups over liquidity ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Economics

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Investors look away from energy intensive sectors such as chemicals, metals and manufacturing.

'An investor's worst nightmare': Energy rationing spells greater chaos for supply chains

Business confidence falls

clock 05 August 2022 • 5 min read
Bank of England governor Andrew Bailey

Bank of England gilt sales 'unlikely to upset markets too much'

Central bank raises rates to 1.75%

clock 04 August 2022 • 3 min read