Ashley Alder, FCA Chair, has spoken to the Managed Fund Association’s summit. He spoke on the role of the diverse investment and funding markets which are not banks – all of which share the feature of not taking customer deposits. NBFIs represent around half of global financial assets. As a result, the NBFI policy programme is working to ensure the financial stability of the wider marketplace, with the basic aim of expanding financial stability regulation into investment markets. He said he believes a proper assessment of NBFI risks would involve a good understanding of hidden on or off-balance sheet leverage, a better assessment of liquidity risks and far better information on exposures between private markets and traditional banks. Better data and better data sharing, he said, is key, and there is a need to enhance reporting from NBFIs. The focus on how best to address the issues may shift to having access to the essential data to manage the risks.