Global policymakers are launching a review of the impact on investment fund liquidity as financial markets tumbled in response to the initial onset of the Covid-19 pandemic.

The International Organization of Securities Commissions (IOSCO) and the Financial Stability Board (FSB) are carrying out a joint analysis of the open-ended investment funds that faced redemption pressures due to pandemic-driven market stress in March and April last year.

Among other things, their analysis will review the availability and use of liquidity management tools by funds during the crisis, their impact on the overall market, and links to the funds’ underlying assets.

To help inform that analysis, the groups launched a survey to collect information from regulators on the implementation and use of IOSCO’s guidance on liquidity risk management for investment funds, which was issued back in 2018.

The survey also seeks information on their liquidity risk management practices and experiences during the market turmoil last March.

The deadline to participate in the voluntary survey is April 16.

At the same time, IOSCO launched a review of its 2018 guidance on liquidity risk management, which is intended to ensure investors are protected during stressed market conditions and to prevent broader financial stability issues.

The results of that review are expected by the autumn of 2022.