At a glance: Liquidity risk management for funds

July 2020

In April 2020, due to the significant impact of the COVID-19 pandemic on the global capital markets, the Hong Kong Securities and Futures Commission (SFC) took a proactive approach to intensify supervisory efforts on potential vulnerabilities arising from the exceptional market conditions such as liquidity risks arising from investment funds and how investment fund managers are deal with such risks.

Our webcast provides an overview of liquidity risk management, explains the SFC’s requirements with regard to liquidity risk management and offers practical examples for managing liquidity risks.

In light of the COVID-19 crisis, the SFC issued a circular in March 2020 reminding all fund managers, trustees and custodians of SFC-authorised funds to use appropriate liquidity risk management tools, reiterating how critical liquidity risk management is for the asset and wealth management industry in Hong Kong. In this At a glance, we highlight the SFC’s concerns over liquidity risk, identify good practices for managing liquidity risk, and explain how we can help.

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Contact us

Helen Li

Partner, PwC Hong Kong

Tel: +[852] 2289 2741

Carlyon Knight-Evans

Partner, PwC Hong Kong

Tel: +[852] 2289 2711

Jenny Yip

Director, PwC Hong Kong

Tel: +[852] 2289 1968

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