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Investors may have to pay more to quit funds early, says Bank of England

UK central bank says fire sales by funds could lead to risk multiplying throughout the system

Funds that invest in hard-to-sell assets while promising investors can redeem their money whenever they like represent a potential “systemic risk” to financial stability, the Bank of England said as it set out a three-point plan to tackle the problem.

Setting out a list of “principles” for how such funds should operate, the bank suggested it may introduce rules that would oblige investors who want to get their money out quickly to accept a lower price.

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