LONDON (Reuters) – Asset professionals have a central responsibility to assure effective liquidity management of their cash, even exactly where financial commitment management has been delegated to a different particular person, Britain’s Economic Conduct Authority explained on Monday.
“Fantastic fund governance makes certain the liquidity of your funds’ underlying property is correctly considered,” Nick Miller, FCA head of asset administration, mentioned in a “Pricey Chair” letter to asset supervisors posted on Monday.
The FCA has opened an investigation into the suspension in June of the now-shut flagship equity fund run by Neil Woodford, just one of Britain’s best-profile asset managers.
The fund was not able to meet up with each day phone calls from traders for redemptions mainly because it was unable to offer purportedly illiquid assets rapid more than enough.
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