Regulatory Alerts2020-09-18
CSA Staff Notice 81-333: Guidance on Effective Liquidity Risk Management for Investment Funds
The Canadian Securities Administrators issued this notice to provide guidance to investment fund managers on developing and maintaining effective liquidity risk management frameworks. The document outlines key elements including strong governance, ongoing maintenance of policies, stress testing, disclosure, and the use of liquidity management tools. It emphasizes aligning fund redemption terms with asset liquidity profiles and monitoring risks under both normal and stressed market conditions to prevent systemic vulnerabilities.
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