Regulatory Alerts2024-08-21
Added · Updated
Liquidity requirement for investment firms
Investment firms must maintain liquid assets equal to at least one-third of their fixed overheads requirement to meet the ongoing liquidity obligation under Article 43 of the IFR. Eligible liquid assets include unencumbered short-term deposits, cash, specific receivables subject to a 50% reduction factor and a one-third cap, and certain government bonds or financial instruments listed in Delegated Regulation (EU) 2015/61. IFR Class 3 firms report these figures annually, while IFR Class 2 firms must submit full liquidity reports quarterly. DNB does not exempt any investment firms from this requirement, and firms failing to comply must notify the regulator and face appropriate measures.
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