Martin Gilbert, chief executive of Aberdeen Asset Management, has urged the Bank of England to consider scrapping the daily liquidity on open-ended funds across the industry to cope with a potential sell-off in markets.
The CEO has suggested a move away from daily redemptions at a time of heightened volatility could protect investment funds from sudden outflows. "Regulators globally are concerned about liquidity in the bond market," The Telegraph quotes Gilbert (pictured) saying. "It is all to do with us giving daily liquidity to our clients, when the underlying securities or bonds or government bonds that we own are maybe less liquid, and what this discussion is centred all around is, how systemically risky is that?" He said the move would need to come from the regulator, because any one asset ma...
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