Updated version of the ESMA Guidelines on stress test scenarios under the MMF Regulation

TO : Regulated Entities: i. Alternative Investment Fund Managers (AIFMs)1 ii. UCITS Management Companies2 FROM : Cyprus Securities and Exchange Commission DATE : 22 April 2024 CIRCULAR No : C637 SUBJECT : Updated version of the ESMA Guidelines on stress test scenarios under the MMF Regulation

1. The Cyprus Securities and Exchange Commission (‘CySEC’) wishes, with this circular, to remind the Regulated Entities, that the European Securities and Markets Authority (‘ESMA’) issued on March 6, 2024 an updated version of its Guidelines on stress test scenarios under the MMF Regulation (‘the Guidelines’) with reference number ESMA50-43599798-9011, in the official translations in all EU official languages. Furthermore, this Circular replaces the previous Circular (C561) on the same topic, issued on March 31, 2023.
2. The Guidelines apply to: (i) national competent authorities, (ii) money market funds and (iii) managers of money market funds as defined in the MMF Regulation.
3. The Guidelines apply in relation to Article 28 of the MMF Regulation and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by MMFs or managers of MMFs in accordance with that article.
4. The Guidelines shall apply from 6 May 2024 (i.e. two months from the date of publication of the guidelines on ESMA’s website in all EU official languages) with respect to the partsin the Guidelines shown in red – the other parts of the Guidelines already apply from the dates specified in Articles 44 and 47 of the MMF Regulation.
5. CySEC therefore urges the Regulated Entitiesto whom these Guidelines apply, to make every effort to comply. Sincerely, George Karatzias Vice Chairman of Cyprus Securities and Exchange Commission 1 The term includes a) Cyprus based AIFMs and internally managed AIFs whose total asset under management (‘AuM’) exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the Alternative Investment Fund Managers Law (‘AIFM Law’) as the case may be, and b) Cyprus based AIFMs and internally managed AIFs whose Total AuM do not exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the AIFM Law, as the case may be, but have exercised the ‘opting-in’ possibility of Article 4(6) of the AIFM Law. 2 The term includes Cyprus based Management Companies of Common Funds and/or Variable Capital Investment Companies and internally managed UCITS in accordance with the provisions of Law 78(Ι)/2012 (‘UCITS Law’)