Financial Stability Board
Liquidity management framework in open-ended funds - FSB publishes report on assessment of effectiveness of FSB’s 2017 recommendations - 14 December 2022
The Financial Stability Board (FSB) has published its assessment of the effectiveness of the FSB’s 2017 recommendations on liquidity mismatch in open-ended funds (OEF) (the FSB Recommendations).
The report finds that authorities have made meaningful progress in implementing the FSB Recommendations. Nevertheless, lessons learnt since their publication, including during the market turmoil of March 2020, have generated new insights into liquidity management challenges in segments of the OEF sector. The report concludes that certain policy enhancements would strengthen the current framework and OEF liquidity management practices, including development of detailed guidance on the design and use of liquidity management tools and steps to promote the use of stress testing.
FSB report: Assessment of the effectiveness of the FSB’s 2017 Recommendations on liquidity mismatch in open-ended funds
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Press release
HM Treasury and Financial Conduct Authority
A new retail disclosure framework - HM Treasury publishes Consultation Paper on repealing PRIIPs and FCA publishes Discussion Paper (DP22/6) - 9 and 13 December 2022
HM Treasury has published a Consultation Paper on its plans to repeal the UK PRIIPs Regulation (1286/2014) and replace it with a new framework for retail disclosure, as part of the Edinburgh Reforms. The consultation paper outlines a new direction for retail disclosure, designed to address a range of issues. The proposals are based on three guiding principles centred around retail investor access to clear and useful information, ensuring disclosure is proportionate to the risk associated with, and complexity of, investment decisions, and the need to provide more choice to retail investors and reduce the burdens for firms. The paper also outlines the government's views on some of the wider challenges relating to retail investment and disclosure, and seeks views on obstacles that prevent or discourage firms from offering investment products from different jurisdictions to UK retail investors, and how these can be addressed. It also seeks views on digitised disclosure formats, including on the extent to which a less prescriptive disclosure regime will facilitate innovative disclosure formats.
The FCA has separately published a Discussion Paper (DP22/6) on the future disclosure framework for retail investments. It invites feedback on how the FCA can design and deliver a good disclosure regime and seeks input on how the FCA can future-proof retail disclosure regulation. In particular, the FCA invites views on the delivery, presentation and content of retail disclosures.
The deadline for responses to HM Treasury’s consultation is 3 March 2023. Responses to the FCA’s Discussion Paper may be made until 7 March 2023. The FCA intends to conduct consumer testing ahead of consulting on any new rules for disclosures.
Consultation on PRIIPs and UK Retail Disclosure
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FCA Discussion Paper (DP22/6): Future Disclosure Framework
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Press release
