Chief executive of the Financial Conduct Authority (FCA) Andrew Bailey has listed a number of factors that could jeopardise market stability, including the role of open-ended investment funds, following the volatility experienced in early February.
The Chicago Board Options Exchange's Volatility Index (VIX) experienced its largest ever one-day move on 5 February, reaching its highest level since 2015 amid a steep decline in equity markets. Reflecting on the volatility, Bailey asked: "Are there features of the structure of the system today, such as the larger number of open-ended investment funds, which mean that there are risks to stability which need to be tackled?" He highlighted the FCA is currently looking at the risks associated with open-ended funds, as part of a reaction to the closures and suspensions seen in UK property...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
