The FCA updated its COVID 19 webpage on 26 August 2020 to announce the launch of a new survey in to the liquidity mismatch in open ended funds. In Q4 last year, the Financial Policy Committee (FPC) judged that the mismatch between redemption terms and the liquidity of some funds’ assets could become a systemic risk. The FPC went on to say that there should be greater consistency between these, with specific focus on 3 principles: measures of liquidity, pricing, and redemption notice period.
The survey is a voluntary exercise and is part of the FCA’s ongoing joint review with the Bank. The data will provide an important element for the joint review. Asset managers included in this survey are required to respond to the questions on a best-effort basis by 30 September 2020.
To visit the revised FCA webpage for more information, please click here.