David Lawton, FCA director of markets policy and international, has given a speech in which he considers the systemic risks posed by investment funds to the financial system and the regulatory changes that might be proposed to limit these risks. Points of interest in Mr Lawton's speech include the following: (i) the regulatory work in this area is not finished and regulators are still assessing the impact of new post-financial crisis market conditions; (ii) the FSB and IOSCO have identified a range of potential sources of risk and specified five structural vulnerabilities of funds, as part of their work (which is now on hold) in seeking to develop proposed methodologies for identifying entities that should be considered systemically important financial institutions (including investment funds and asset managers or investment advisers); and (iii)  it is incumbent on the fund and its manager to act in the best interests of all investors in executing the service: at the start of the service, on an ongoing basis, and at the point of redemption. Finally, as part of its asset management competition market study, which was launched in December 2015 and on which the FCA will be working in 2016, the FCA will be seeking to establish whether investors are aware of, and understand, the potential liquidity risks.