FCA’s Director of Markets Policy and International, David Lawton, has spoken at the Financial Risk International Forum on systemic risk posed by investment funds to the financial system, and the regulatory changes that might limit these risks. Mr Lawton identifies the ability to manage fund redemptions in an orderly way, particularly in the context of post-crisis market conditions, including liquidity, as a key funds vulnerability. However, he also notes that funds show good practice at understanding and managing both the liquidity of their assets and the expected demand for redemption. (Source: FCA discusses funds risks to the financial system)