BoE Warns Against Fund Suspensions Amid Woodford Saga
Law360, London (June 14, 2019, 6:15 PM BST) -- Blocking investors for withdrawing cash from funds to stop the sale of assets could lead to an “economic earthquake,” a senior regulator has warned, as the saga surrounding Neil Woodford's suspended fund rumbles on.
Alex Brazier, the Bank of England’s executive director of financial stability, said that freezing investor withdrawals could exacerbate the problem and encourage more to pull their money out if they thought a fund was at risk of shutting its doors.
“Redemptions can be suspended — funds can be gated — to limit the selling pressure. But such measures are a double-edged sword,” Brazier told an audience at...
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