The FCA has published an update on good practices relating to liquidity management for investment firms following its assessment of UK asset managers’ strategies for managing the liquidity of their funds in normal and stressed scenarios. The good practices relate to: (i) disclosure of liquidity risks to investors; (ii) liquidity risk management and oversight; (iii) fund dealing (i.e. the management of redemptions and transaction costs related to redemptions); and (iv) exceptional liquidity tools and exceptional liquidity measures. The FCA highlights three areas of focus for firms to evaluate when assessing their liquidity management: tools, processes and underlying assumptions, operational preparedness and disclosure.