Regulatory Alerts2023-05-24
Final Report on the 2022 Common Supervisory Action on Valuation
ESMA published this final report on a 2022 Common Supervisory Action with National Competent Authorities to assess compliance with asset valuation rules for UCITS and open-ended AIFs. The exercise identified deficiencies in documented valuation policies, independence of valuation functions, and the incorporation of stress testing outcomes, particularly for funds holding less-liquid assets like private equity and real estate. ESMA urges supervisors to enforce remedial actions and enhance convergence to ensure fair valuation and investor protection during stressed market conditions.
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