LONDON, Nov 13 (Reuters) - Fund managers must improve readiness to shocks after the fallout from COVID-19 on markets in March revealed shortcomings, the European Union’s securities watchdog said on Friday.
Funds exposed to real estate and corporate debt showed they were able to respond adequately to redemption pressures, the European Securities and Markets Authority said following its review of the sector.
“However, the work also revealed shortcomings that must be addressed in order to enhance funds’ preparedness to future shocks, and we have identified a number of priority areas that funds and supervisors should focus on to address potential liquidity risks in the fund sector,” ESMA said. (Reporting by Huw Jones Editing by Rachel Armstrong)
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