Proposals to impose more uniform use of liquidity management tools across open-ended funds do not recognise the wide universe of funds and the needs of their investors. That is one of the key messages in AIMA’s responses to the Financial Stability Board (“FSB”) and International Organization of Securities Commissions (“IOSCO”) consultation papers on how liquidity is managed in open-ended funds.

The consultations reflect the FSB’s long-standing concern over so-called liquidity mismatches in open-ended funds and the potential risks they could pose to financial stability. Work to amend the existing FSB and IOSCO recommendations on liquidity management in open-ended funds will take place over the rest of this year and 2024. AIMA will be closely engaged with this important work.