Fund liquidity looks set to remain a regulatory and supervisory
priority at both domestic and EU level over the coming year.
In an industry letter issued 7 August 2019, the Central Bank
highlighted the importance of liquidity risk management and
liquidity stress testing in investment funds and at EU level, ESMA
has published its final guidelines on liquidity stress testing
("Guidelines") in UCITS and AIFs.
The Guidelines apply to fund managers and provide
guidance on how they should carry out liquidity stress tests on the
individual funds that they manage and how depositaries should
fulfil their obligations regarding these stress tests. The
Guidelines, are supplementary to the requirements on liquidity
stress testing ("LST") in the AIFM and
UCITS Directives and may be applied proportionately, having regard
to the nature, scale and complexity of each fund. The Guidelines
apply to all UCITS and AIFs, with ESMA clarifying that this
includes those funds established as
