EU to crack down on asset managers in 2020 after Woodford fund closure

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EU to crack down on asset managers in 2020 after Woodford fund closure
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Market watchdogs in the European Union will launch coordinated checks next year ...

LONDON - Market watchdogs in the European Union will launch coordinated checks next year on whether asset managers are flouting liquidity rules after the shuttered Woodford fund in Britain has raised questions, a top EU regulator said on Friday.

Liquidity refers to the ability of a fund to easily sell its assets, such as stocks and bonds, to raise cash for meeting redemption calls from investors. The liquidity checks by national watchdogs across the EU will follow a common approach developed at ESMA. Woodford bust the EU cap on holdings of illiquid or hard-to-sell assets, and listed some assets on an exchange in Guernsey that were little traded.

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