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 ...