What is the latest update on requirements for liquidity risk management?
In August 2019, the Central Bank of Ireland (CBI) issued a letter reminding UCITS management companies, SMICs, AIFMs and internally managed AIFs (Fund management companies or FMCs) of the importance of ongoing and effective liquidity management. This was discussed in our August bulletin.
Liquidity management for investment funds is a current priority on the regulatory agenda in Ireland and the rest of Europe, even though the effective date of the ESMA liquidity guidelines is 12 months from now. We expect the CBI to notify ESMA that it intends to comply fully with the guidelines.
FMCs will need to assess the requirements in the ESMA liquidity guidelines against their current liquidity risk management practices, policies and reporting before the 30 September 2020 deadline.
Read our In Focus paper for more information on this topic.