C793 – Liquidity Risk Management- The revised framework introduced by the amending Directive (EU) 2024/927

TO : Cyprus Investment Fund Managers (‘CyIFMs’):
i. Cyprus UCITS Management Companies and Self-Managed
Cyprus UCITS (‘CUCITS MCs’)
ii. Cyprus Alternative Investment Fund Managers and Self￾Managed Cyprus AIFs (‘CAIFMs’)
FROM : Cyprus Securities and Exchange Commission DATE : 06 August 2026 CIRCULAR No. : C793 SUBJECT : Liquidity Risk Management- The revised framework introduced by the amending Directive (EU) 2024/927

1. The Cyprus Securities and Exchange Commission (‘CySEC’) wishes to draw the
   attention of Cyprus Investment Fund Managers (‘CyIFMs’), to the significant amendments introduced to the European regulatory framework in relation to liquidity risk management and liquidity management tools.
2. In particular, CySEC draws attention to the amendments introduced by Directive
   (EU) 2024/927, which amended Directive 2011/61/EU on Alternative Investment Fund Managers and Directive 2009/65/EC on UCITS, in relation to liquidity risk management (among others). These amendments strengthen the existing framework and introduce harmonised requirements regarding the availability, selection, calibration, activation and use of liquidity management tools by UCITS and open-ended AIFs.
3. CySEC also draws the attention of CyIFMs to the ESMA Guidelines on liquidity
   management tools of UCITS and open-ended AIFs, as well as to the relevant Regulatory Technical Standards (‘RTSs’), which further specify the characteristics of liquidity management tools.
4. In May 2026, CySEC issued Circular 776 to inform the Cyprus Investment Fund
   Managers (‘CyIFMs’) of the ESMA Guidelines on Liquidity Management Tools (LMTs) for UCITS and open-ended AIFs and their adoption by CySEC through their incorporation into its supervisory practices and regulatory approach.