BoE and FCA move to tackle systemic risks in open-ended funds
Mark Carney says issues are “increasingly appreciated” in global discussions
UK regulators are weighing their options for how best to tackle potential systemic risks posed by illiquid open-ended funds.
The Bank of England and Financial Conduct Authority have been investigating the issue and published an interim update on December 16.
The regulators say open-ended funds’ liquidity should be assessed on the basis of either the price discount needed for a quick sale of a “vertical slice” of the fund’s assets, or the time it takes to sell those assets with a minimal price
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