The suspension of property funds in Britain and difficulties faced by liability-driven investment funds last September have thrown a spotlight on the ability of asset managers to drum up enough cash to meet investor redemptions or collateral calls.
"As things stand, gaps observed in liquidity management could lead to a risk of investor harm," the FCA said in a statement. "It's vital the outliers take quick action. They risk regulatory intervention if they don’t take this opportunity to address weaknesses," it added.