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Warning signs at asset managers must not be ignored

To many investors, big funds look safe and a star name promises returns. But risk is becoming concentrated and systemic dangers could lie ahead

Are some asset managers too big to fail? The financial crisis highlighted risks in banks and insurance but other areas have been overlooked. Now regulators are beginning to recognise risks in the investment sector and are turning their attention to some of the largest managers.

But there seems to be little hurry to plug the gaps. More urgency is needed; money printing and the current stock market boom have increased systemic risk.

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