Regulatory Alerts2022-11-02
AFM Feedback on Investigation into Liquidity Risk Management for UCITS
The Dutch Authority for the Financial Markets (AFM) issued this letter to provide feedback on a Common Supervisory Action coordinated by ESMA regarding liquidity risk management in UCITS. The investigation identified that while most managers comply with regulations, significant deficiencies exist in pre-investment liquidity forecasting and in governance and internal control procedures. The AFM requires all supervised UCITS managers to review these findings and implement necessary organizational improvements to ensure ongoing compliance.
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