Businesses must also be studying whether they have the systems to collate, analyse and report on the use of derivatives and leverage across fund ranges, and if they operate best practice when it comes to liquidity management.
Other areas for consideration include whether in stressed market conditions, firms are able to make use of the full range of liquidity management tools that the regulator currently allows. Finally, firms need to make sure they are fully engaged with EU and national debates on new leverage and liquidity requirements.
Julie Patterson is a director and regulatory specialist at KPMG
Number of policy recommendations from the FSB to tackle liquidity concerns in open-ended funds
Closing of Third Avenue’s high-yield fund amid worries about bond liquidity
Assets under management in open-ended fixed income funds globally
Share of US corporate bonds owned by mutual funds at the end of 2015, a rise from 6% in 2008