Fund managers should provide clarity on the nature of assets held by them and also about the liquidity of such assets, Bank of England Deputy Governor Andrew Bailey said Wednesday.
“There is no lack of clarity about the nature of the assets held under management,” Bailey, who heads Prudential Regulation Authority said at the International Financial Services Forum, Dublin.
He observed that the recent failure in the US of the Third Avenue Focused Credit Fund has not made major ripples because there was no obvious lack of clarity around the assets.
The second condition to meet is that there is no illusion about the liquidity of the assets, he noted. It is critical that investor expectations are well adjusted to the prevailing liquidity conditions.
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