The chief executive of Fidelity International has backed an overhaul of rules governing the liquidity of investment funds.
Anne Richards, who took over at the £330bn asset manager in December 2018, said that measures needed to be taken after the collapse of Woodford Investment Management last year and the gating of M&G’s £2.5bn property fund.
She said that open-ended funds created “a hidden assumption” that “assumes liquidity will always be there when you need it”.
She added that there needed to be new rules regarding “conditions where daily dealings are no longer appropriate”.
The Financial Conduct Authority is currently looking into the liquidity mismatch, especially in property funds.
