News 

Bank of England to spell out fate of open-ended funds in December

“LONDON (Reuters) – How investors can pull cash from open-ended funds will be updated in December, following the high-profile suspension of money manager Neil Woodford’s equity fund, the Bank of England said” writes Midwest Communications Inc for 95kqds.com. The BoE and the Financial Conduct Authority are looking at the illiquidity mismatch in open-ended funds that contain hard-to-trade assets and offer daily withdrawals.Open-ended funds like Woodford are regulated under European Union rules. But the new FCA rules did not cover funds like Woodford’s and did not tackle fund structure, leaving that to the separate BoE and FCA review.”The committee continued to judge that the mismatch between redemption terms and the liquidity of some funds’ assets had the potential to become a systemic risk,” the committee said in a statement.
 
Source: 95kqds.com



Related posts