MAS wants funds to increase the frequency of liquidity risk monitoring and to extend reporting of significant redemptions to non-retail funds.
The Covid-19 crisis has exposed vulnerabilities in the world economy, highlighted the risks of climate change, and provided timely reminders for building resilience to global risks, said MAS (Monetary Authority of Singapore) Executive Director Tan Keng Heng.
Speaking at the 7th Regulatory/ Legal Roundup Forum, hosted by IMAS (Investment Management Association of Singapore) on Friday (28 May), he highlighted the need for fund managers to build portfolio resilience to liquidity risk.
Ongoing market uncertainties and the threat of renewed waves of Covid-19 derailing the global recovery, have underscored the need to monitor and manage liquidity risk prudently, particularly for funds with daily dealing arrangements, and those that invest in less liquid assets, Tan said.
MAS is working to enhance fund monitoring and surveillance efforts, to ensure early warning of significant fund outflows and potential impacts to investors.
According to Tan, MAS is looking to extend the reporting of significant redemptions beyond authorised…
