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FSB Consultation Report on addressing vulnerabilities from liquidity mismatch in open-ended funds

International agenda | Financial stability
04 September 2023 | Policy Position
International agenda
Financial stability
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EFAMA welcomes the opportunity of this consultation report to share views on how regulators could foster greater consistency in the management of liquidity risks in the Open-Ended Funds (OEFs) sector and on how the FSB should proceed in the future to evaluate any potential build-up of systemic risks in capital markets.

As a starting point, we welcome in this consultation the recognition that it is the primary responsibility of management companies to select the appropriate LMTs for the funds under their management and that funds investing in less liquid, or illiquid, assets should have the possibility to offer daily redemptions to their end-investors, provided their liquidity management policy is suitable and robust enough. We also welcome the FSB’s commitment to promote the availability and the consistent use of a broad set of anti-dilution and quantity-based LMTs. (more)

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