The 30 September compliance deadline is fast approaching for a number of liquidity developments. Including: ESMA’s new guidelines on liquidity stress testing in UCITS and AIFs. The FCA’s new rules for certain open-ended funds investing in inherently illiquid assets. FCA and Bank of England survey to review the liquidity mismatch in open ended funds Article 37 MMF Reporting for both Q1 and Q2.
All eyes may be on the month ahead as we enter the final countdown for the entering into force of ESMA’s liquidity stress testing guidelines, however, the past month still brought several important developments on topics such as: AIFMD; Money Market Funds; PRIIPs; Liquidity; and Short Selling.
This month’s regulatory round-up pulls together some interesting regulatory developments we have tracked throughout June. The past month brought a number of important developments, particularly on the EU Money Market Fund Regulation, with ESMA publishing updated reporting instructions, and translations to the MMF guidelines.
This month marked one year since the collapse of Neil Woodford’s LF Woodford Equity Income fund. The Woodford fund was suspended in June, after it became overwhelmed by redemption requests from investors. One year on and investors are still awaiting their final pay-out. One year on and questions concerning the liquidity mismatches in open-ended funds still remain.
This month’s regulatory round-up, pulls together some of the interesting regulatory developments we have tracked throughout May. It’s no surprise that liquidity continues to dominate the headlines with the CSSF launching the IFM notifications on fund issues and large redemptions, EU Member States publishing their intentions regarding the Money Market Fund Stress Tests, and the ESRB making recommendations regarding liquidity risk in investment funds.
Fund liquidity problems witnessed in 2019 with Woodford and H2O Asset Management brought liquidity back into the spotlight. Since then, the focus hasn’t really faded on the issue of liquidity, and if anything, has intensified with the COVID-19 pandemic causing market volatility resulting in several more fund suspensions.
Although 2020 has already seen a number of initiatives intended to address liquidity risk, there are still more to come, with September due to be a particular busy month for risk management professionals.
With over 100 developments tracked in the last month on ATLAS Funds Training, unsurprisingly COVID-19 continues to dominate the headlines. This month’s briefing covers the latest developments impacting asset managers, including: PRIIPs back in the spotlight with the EU divided over further reforms, Liquidity risk management, The renewal of short selling bans despite growing scepticism, The French AMF issuing fines, unhappy with the quality of AIFM reporting systems and considering proposals to reduce major shareholding thresholds, and The SEC’s proposed new framework for valuation practices.