Fund Liquidity: Still a Global Cause for Concern

Increasingly, regulators globally have become concerned about two aspects of open-ended funds’ liquidity. Firstly, that funds do not trade with investors in a manner that reflects the liquidity of their underlying portfolios and secondly, that the underlying portfolios are not as liquid as the regulators would expect them to be.

This has led jurisdictions and international bodies to question the rules that they have, to date, applied.

In this article we look at the current work being undertaken to try and solve the problem of liquidity mis-match in open-ended collective investment schemes.

We look at the work undertaken by global bodies such as IOSCO and the FSB, as well as domestic regulators in Europe, The US, UK and Asia.