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      "kind": "list",
      "text": "Fund operators over-relying on pre-trade compliance checks to ensure asset compliance with rules. Firms not reviewing and updating their liquidity policy with the most up to date information and assets owned by funds. Stress tests of fund assets and investors do not consider potential adverse market events, and how they may impact the fund's liquidity. Liquidity management in a fund is considered to be less important than fund performance.",
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      "text": "Design and robustness of strategies, policies, processes and systems in place to identify liquidity risk inherent within funds, particularly how this is differentiated for different fund structures. Appropriateness of stress testing currently conducted on fund liquidity, and how this is aligned to a fund's assets, investor base and dealing frequency. Governance and management information over fund liquidity.",
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      "text": "All fund operators must consider fund liquidity on an ongoing basis, particularly how the fund's assets could be liquidated to meet expected (and unknown) redemption requests, aligned to the fund's dealing frequency. Liquidity came to the fore post-Brexit for funds investing in illiquid assets, which has generated a number of FCA discussion papers and consultations. However, with the ongoing suspension of the Woodford fund, all fund operators are increasingly under pressure to test their fund's robustness to liquidity crunches. This focus will intensify in the next year after ESMA's fund liquidity guidelines come into force in 2020, which require operators to undertake new liquidity stress tests of their fund assets and redemption requests.",
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      "text": "Further regulation – Capital and liquidity (7/10)",
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