UK:
The Issue Of Liquidity Mismatch Will Be Under The Investor And Regulatory Spotlight In 2020
11 December 2019
Clyde & Co
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Following the FCA's introduction of new rules for funds
investing in inherently illiquid assets, and the tussle between the
EU and UK regulatory authority over whose regulatory regime was to
blame for 2019's "liquidity crisis", fund managers
and platform providers can expect additional regulatory scrutiny
over the effectiveness of their liquidity management.
IFAs who do not consider liquidity issues when advising on
suitability are also exposed to potential claims and regulatory
attention. As investors wake up to the potential for liquidity
risks, claims professionals will be alive to the potential for
"contagion risk" and underwriters will also be assessing
what questions they need to ask fund managers and IFAs regarding
their management of liquidity risk.
Read the rest of our insurance predictions here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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