regulator of one of the largest fund hubs globally has meant for us that it is important that we contribute constructively to the international debate and take direct action where required. 2 / 8 bis - central bankers'speeches in doing so, we have sought to bring our practical experience of regulating such a large funds hub, while also being an integrated regulator – with responsibilities covering both investor protection and financial stability – which means we are active in a range of european and international discussions on this important topic. last july's discussion paper represented views of both a financial stability authority but also a securities regulator. it was the culmination of significant internal debate and serves as one of the ways in which we are trying to facilitate the ongoing international discussion in this area. systemic risk and investment funds : a matter of perspective for us, it is an absolute truth that cohorts of the investment fund sector can represent a systemic risk. this is not an abstract risk, as we have witnessed episodes of stress involving parts of the funds sector. let me be clear about this : in the face of financial vulnerabilities, cohorts of funds can amplify shocks to other parts of the financial system and the real economy. this amplification follows decisions taken by individual fund managers in response to shocks. these decisions are often rational at an individual level but, when aggregated across entire cohorts of funds, can generate negative spillover effects. those decisions come from certain vulnerabilities, namely liquidity mismatch and leverage. in the case of liquidity mismatch, in response to a shock, fund managers may need to sell assets in a falling market in order to meet heightened investor redemptions. such asset disposals can amplify downward asset price movements, resulting in a spiral effect. for leverage, a shock may trigger margin calls on derivatives positions, forcing fund managers to dispose of assets to raise cash to meet margin requirements. again, these asset disposals can amplify asset price movements. as i said, these are not abstract risks. we saw these concerns play - out in parts of the funds sector during the global financial crisis, the covid - induced market shock of march 2020, and recent ldi fund issues following the uk gilt market shock. and i stress in parts because – as i'll set out later – this is a very diverse sector, and we should not be making general statements. but neither is this chain of events the result of poor

23. 01. 2017 presentation of the book “ la historia de foment del treball 1771 - 2011 ” foment del treball nacional, barcelona luis m. linde governor mr. president of fomento del trabajo nacional, distinguished authorities, ladies and gentlemen : let me begin by thanking fomento del trabajo nacional and its president, joaquin gay de montella, for their invitation to take part in this event which has seen the presentation of the two books that compile the history, over more than two centuries, of this great institution. thank you to jordi gual for his opening address. and my congratulations to the authors, manuel millan and francesc cabana, and to all the managers and associates of fomento del trabajo. foment del treball nacional, the oldest employers ’ association in europe, remains fully active today, with a significant presence in our economic and business life. as the epilogue to the study presented today states, it is a story without an ending, and we are all happy that this should be so. the role of this private, independent and not - for - profit institution has always been to defend the interests of its associates and of all catalonian entrepreneurs. fomento has been a liaison with the authorities, but also with the representatives of civil society. its objective, the compass steering its initiatives and taking of positions, has been to maintain an environment conducive to the pursuit of productive activities and the sound functioning of companies. and this has been its major contribution to the economic development of catalonia and of spain. our constitution acknowledges the pivotal role of employers ’ associations. article 7 of the preliminary title recognises their role ( along with the trade unions ) as organisations key to the defence and promotion of economic and social interests, a point further bolstered in article 22 and in the freedom of association it advocates. our constitution also details specific requirements in respect of the internal structure of employers ’ associations, their ends and their functioning. it is emphatically important that employers ’ associations should be exemplary institutions, both for society and for their associates. among their obligations is, of course, to ensure this exemplary role, which includes defending the common good, good corporate governance and, in all instances, strict compliance with the law. fomento has always been open to collaboration with other employers ’ organisations. notable proof of this, in the none - too - distant past, was its participation and