BoE: Fund liquidity mismatches could 'amplify shocks in the financial system'

May also impact the provision of finance to the economy

Mike Sheen
clock • 4 min read

Liquidity mismatches in open-ended funds, such as that seen in the property sector and in the case of the Woodford Equity Income fund, poses a threat to financial stability and could “amplify shocks in the financial system”, the Bank of England (BoE) has warned.

To continue reading this article...

Join Investment Week for free

  • 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
member?

Login

More on Regulation

FCA addresses 'misconceptions' on Consumer Duty co-manufacturing rules

FCA addresses 'misconceptions' on Consumer Duty co-manufacturing rules

'Proportionate' application of the rules

Jenna Brown
clock 08 December 2025 • 5 min read
FCA reforms trusts' cost disclosure rules after years of campaigning

FCA reforms trusts' cost disclosure rules after years of campaigning

Reversed passive funds decision

Eve Maddock-Jones
clock 08 December 2025 • 4 min read
FCA outlines plans to overhaul client categorisation rules

FCA outlines plans to overhaul client categorisation rules

Following industry calls for a more flexible regime

Sahar Nazir
clock 08 December 2025 • 2 min read
Trustpilot