Regulatory Alerts2020-06-12
Recommendation of the European Systemic Risk Board of 6 May 2020 on the liquidity risks of investment funds (ESRB/2020/4)
The European Systemic Risk Board issued this recommendation to enhance the preparedness of investment funds, specifically those with significant exposures to corporate debt and real estate, against future adverse liquidity shocks. It mandates the European Securities and Markets Authority to coordinate with national competent authorities to conduct a targeted supervisory exercise assessing fund resilience to redemption pressures and valuation uncertainties. The ESRB requires ESMA to report its analysis and conclusions on the preparedness of these specific fund segments by October 31, 2020.
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