Regulatory Alerts2020-09-29
ESMA Guidelines on Liquidity Stress Testing in UCITS and AIFs
The European Securities and Markets Authority (ESMA) issued these guidelines to establish consistent standards for liquidity stress testing within Undertakings for Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs). The document requires fund managers to implement robust stress testing frameworks that accurately reflect potential liquidity risks under various market scenarios. These measures aim to enhance investor protection and ensure that funds maintain sufficient liquidity to meet redemption requests during periods of financial stress.
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