UK-based asset managers have increased the number of stress tests they perform across their businesses in the wake of several high-profile scandals, but many are still falling short of what the financial regulator expects of them.

According to a survey of 44 asset managers, wealth managers and investment platforms by consultancy KPMG, 79% carry out liquidity assessments to ensure they can withstand single-event shocks, including the sudden loss of a big client. This is an increase from 30% in 2018.