[PDF] esma guidelines liquidity

What is Esma liquidity stress testing (LST)?

ESMA Liquidity Stress Testing ESMA’s new Liquidity Stress Testing (LST) guidelines take efect on 30 September 2020, and will apply to all Alternative Investment Funds (AIFs) and Undertakings for the Collective Investment in Transferable Securities (UCITS) along with Money Market Funds.

Is Esma working to improve liquidity management for UCITS?

The CSA showed that the overall level of compliance with the applicable rules is satisfactory in most cases, but there is scope for improvement in liquidity management for some UCITS analysed. The exercise also highlighted areas where ESMA will work to further promote convergence across National Competent Authorities (NCAs).

What are the ESMA guidelines?

These Guidelines are based on Article 16(1) of the ESMA Regulation. The purpose of these Guidelines is to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform and consistent application of Union law.

Does Esma require depositaries to review the LST?

ESMA also acknowledges that it is not the intention of Guideline 15 of the CP or the explanatory considerations (Section V.2 of Annex III of this Final Report) to require depositaries to review or challenge the LST. Q31 In your experience do depositaries review the UCITS RMP and AIF RMP as a matter of course?