BoE speaks on asset management and financial stability: Andrew Haldane has spoken on the risks for financial stability posed by asset management. He said that these risks arise from correlated behaviour, which itself results from market-wide conventions, such as fund performance benchmarking, and accounting and regulatory rules which amplify pro-cyclicality. He then discussed options for regulatory policy, including liquidity risk tools and macro-prudential tools that helped moderate excessive swings on risk premia. (Source: The Age of Asset Management?)