Expectations raised on response of firms during extreme events

The FCA has set out itsexpectations for firms in times of market volatility, based on the crisis in the gilt market following the mini-budget in September 2022.

By Neasa MacErlean

While many of the points focus on that sector, the regulator also highlights "more broadly applicable lessons" about risk management; the severity and speed of such crises; the feasibility of preferred actions in these cases; and assumptions made on operational resilience. Asset managers in particular are now expected by the FCA to act on the new guidance - as well as the Liability Driven Investment (LDI) funds for which the guidance was specifically written.