Central Bank publishes Information Note on Liability Driven Investment Funds

On 29 March 2023, the Central Bank published an Information Note on Liability Driven Investment Funds.

The Information Note provides an outline of the Central Bank’s engagement with market participants and regulators in the UK and across Europe, including the Commission de Surveillance du Secteur Financier (CSSF - Luxembourg) and the European Securities and Markets Authority (ESMA) following the significant UK sovereign bonds (gilts) market turmoil in late September 2022 and its associated impact on UK pensions and liability-driven investment (LDI) funds denominated in GBP.

The Information Note also re-iterates the Central Bank’s expectations on minimum safeguards being observed in respect of a minimum Yield Buffer of 300-400 basis point being maintained.

The Information Note can be accessed here.