Offshore fund centres tighten oversight after UK’s LDI crisis
Financial market regulators in Europe’s main fund hubs have stepped up surveillance of derivative-linked funds used by UK pension schemes in an effort to prevent a repeat of the turmoil that roiled the gilt market last month.
The Central Bank of Ireland has begun asking asset managers running so-called liability-driven investment (LDI) strategies for UK pension schemes to tell regulators before they do anything that would increase the leverage in those funds, people familiar with the situation told the Financial Times.
Regulators in Luxembourg, another European funds hub, also told the FT they had “intervened as required”.
This story originally appeared on: Financial Times - Author:Laura Noonan
