Investment Funds, Markets Liquidity and the Investor Financial Risks International Forum Paris Europlace Institute of Finance 21 March 2016 David Lawton, Director of Markets Policy & International, FCA 1
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 2
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 3
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 4
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 5
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 6
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 7
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 8
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 9
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 10
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 11
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 12
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 13
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 14
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 15
Investment Funds, Markets Liquidity and the Investor Introduction Background on the debate History A focus on asset managers Funds or fund managers? Potential sources of risk What work is being done to consider these risks? Fund liquidity Market liquidity FCA economists’ research The investor angle – expectations, behaviour and disclosure Investor behaviour Disclosure Outcomes Conclusion 16