Are you complying with the updated guidelines on stress test scenarios under the MMF Regulation?

Are you complying with the updated guidelines on stress test scenarios under the MMF Regulation?

Throughout August you will have seen a number of regulators publishing updated circulars, opinions and notices in relation to the application of the ESMA Guidelines on stress test scenarios under the Money Market Fund Regulation (EU) 2017/1131 (MMFR). Including regulators such as the: MFSA, CMVM, Central Bank of Ireland, FSMA & CSSF.

Challenges facing ManCos – more regulations, more regulatory change, and more scrutiny than ever before (Part 1)

Challenges facing ManCos – more regulations, more regulatory change, and more scrutiny than ever before (Part 1)

The pressure is rising on the ManCo industry – Management Companies (ManCos) are dealing with more regulations, and more regulatory change than ever before. This constant churning of regulatory change, coupled with increased scrutiny from regulators has led to a complex, pressured regulatory environment. However, this increased scrutiny is not the only challenge facing Mancos!

Central Bank of Ireland Calls for UCITS Managers to Review Liquidity Risk Management Frameworks

Central Bank of Ireland Calls for UCITS Managers to Review Liquidity Risk Management Frameworks

In early 2020, the European Securities and Markets Authority (ESMA) launched a Common Supervisory Action (CSA) on UCITS liquidity risk management (LRM). The purpose of this exercise was to simultaneously conduct coordinated supervisory activities in 2020 and to assess whether UCITS managers comply with their liquidity management obligations.

Regulatory Round-up: March 2021

Regulatory Round-up: March 2021

With the end of the first quarter of the year, March brought with it a number of developments on a range of areas, including: UCITS & AIFMD, Money Market Fund Regulation, Liquidity Risk Management, Short Selling, ESG and ELTIF Regulation. See below this month’s regulatory round-up to read about these developments and many more we tracked throughout March.

UCITS Liquidity Risk Management ESMAs 11 Areas for Improvement

UCITS Liquidity Risk Management: ESMA’s 11 Areas for Improvement

ESMA has published the results of the 2020 Common Supervisory Action (CSA) on UCITS liquidity risk management (LRM). UCITS are characterised by the offer to investors of on-demand liquidity. Article 84(1) states that UCITS shall repurchase or redeem its units at the request of any unit-holder. If the assets held within the fund cannot be sold quickly to meet redemption requests, there could be severe issues in paying redeeming investors. This can be exacerbated in times of stress when investors may look to redeem en masse whilst the market for the assets is drying up.