Industry Letter – UCITS Liquidity Risk Management

On 19 May 2021, the Central Bank of Ireland (the "Central Bank") published a letter it sent to all Irish authorised UCITS managers (including self-managed UCITS) on 18 May 2021 relating to its review of UCITS liquidity risk management (the "Industry Letter"). The Central Bank's review formed part of the European Securities and Markets Authority's ("ESMA") common supervisory action (the "CSA") on this topic. By way of reminder, ESMA issued a public statement relating to the CSA on 24 March 2021 and the Central Bank in the Industry Letter notes that the findings set out in ESMA's public statement incorporate the findings from the Central Bank's own supervisory analysis and engagement with UCITS managers.