The UK’s financial regulator is looking at ways to improve liquidity management in the country’s £11tn asset management industry.
The move forms part of a post-Brexit review of how the Financial Conduct Authority regulates the sector following the blow-up in the pensions market last year.
On Monday, the FCA announced a consultation on how it could improve its current regime for regulating the UK’s 2,600 asset management firms. The regulator said it was seeking to boost competition, encourage innovation and protect investors.
It said future rules around liquidity management – which determine how funds ensure they can meet investor requests to withdraw their money – must be looked at in the context of “the good functioning of markets” as well as “protecting consumers” in light of the “growth of the funds industry”.
The deadline for submissions in response to the discussion paper is 22 May.
