Liquidity risk management— a look at the tools available

Article

Liquidity risk management— a look at the tools available

In this article, Deloitte Australian Investment & Wealth Advisory Team takes a practical look at the different tools available to fund managers for liquidity risk management and considers what Boards must keep in mind when managing liquidity risk.

Executive Summary

Since the International Organization of Securities Commissions (IOSCO) published its seminal “Principles of Liquidity Risk Management for Collective Investment Schemes” report in 2013, there is hardly a major financial jurisdiction globally that has not turned its attention to the topic of open-ended fund liquidity risk management. Regulators in the US, UK, Singapore, Australia, and Hong Kong have all published guidance or requirements. IOSCO followed up its 2013 work with further publications in 2015, 2017, and 2018. The Financial Stability Board (FSB) published policy recommendations on this topic in 2017 and the European Systemic Risk Board (ESRB) published its own recommendations in early 2018.

Performance magazine issue 29, May 2019

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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