FCA has updated its guidance for Liability Driven Investment managers to enhance resilience of the sector. Previous reviews showed deficiencies in risk management, communications and client servicing and in operational arrangements. FCA has now set out specific recommendations on how firms can improve in each area, including recommendations on stress testing. It expects all LDI managers to act on its guidance and complete urgently any necessary improvements. It also reminds firms that it expects them to notify it under Principle 11 of any developments in their operations or markets that may pose a risk of harm to consumers or to the functioning of the market.