LONDON, Feb 20 Reuters Britain set out plans on Monday for a postBrexit review of its rules for the 11 trillion pound 13.2 trillion asset management sector, with a focus on bolstering liquidity after a near meltdown in funds used by pension schemes last September.

Until Britain39;s departure from the European Union in 2020, rules for the UK funds sector were written in Brussels.

Brexit means UK regulators can write their own regulations, but the Financial Conduct Authority FCA makes clear in its broad review it will stick to strong international standards given Britain39;s global role in asset management.

The sector has fallen short in dealing with stresses in recent years in Britain and elsewhere due to inadequate liquidity, prompting scrutiny globally.

Property funds were suspended in the immediate aftermath of Britain39;s 2016 vote to leave the EU and when the economy went into lockdown to fight COVID19 in March 2020 as investors sought to pull out their money.

Socalled liabilitydriven investment LDI funds, used by pension schemes to ensure longterm payouts to pensioners, struggled to meet cash calls last September when UK government bond prices tumbled.

The regulatory framework contains rules around liquidity management. Many of these rules are designed to protect consumers, the FCA said in a discussion paper on reforming the sector.

But the growth of the fund industry means that liquidity management in funds is also relevant to the good functioning of…