LONDON, July 18 (Reuters) - Global securities watchdog IOSCO has rejected criticism from the Bank of England that it failed to spell out how funds can in practice meet calls from investors for their money back.
IOSCO says its recommendations in 2018 provide a comprehensive framework for regulators to deal with liquidity risks in investment funds and that it was up to national regulators to implement them.
“IOSCO intends to conduct a robust assessment exercise beginning in 2020 which will review how the 2018 Liquidity Risk Management Recommendations have been implemented in practice,” the Madrid-based umbrella body for securities regulators said in a statement on Thursday.
The BoE criticism followed the suspension of a high-profile retail equity fund managed by Woodford Investment Management in June after it was unable to meet redemption calls, trapping thousands of investors. (Reporting by Huw Jones, editing by Simon Jessop)