Member

In response to a couple of specific questions from my noble friend Lord Davies, I agree that liquidity is an important consideration, but these requirements, if they were ever used, would apply to a small proportion of a default fund. They should not therefore pose any risk to funds having the liquidity to meet any liabilities that may be due. My noble friend asked what purpose is served by the examples in new Section 28C. They are there to indicate the Government’s intentions and are intended to correspond to the Mansion House Accord. Regulations will specify how precisely they are to be interpreted if these powers ever get to that stage.