On 2 September 2019, ESMA published its final Report on the Guidelines on liquidity stress testing in
UCITS and AIFs ("Guidelines").
Both UCITS and AIFM directives already provide the obligation to
implement and carry out liquidity stress testing
("LST"). The Guidelines go one-step
further and specify these requirements in more detail. They also
increase the standard, consistency and, in some cases, frequency of
the LST already undertaken.
The Guidelines will apply to UCITS management companies
("UCITS ManCos"), alternative investment
fund managers ("AIFM") and managers of
money market funds ("MMFs")1 . As
regards the scope, exchange-traded funds (ETFs) and leveraged
closed-ended AIFs are included.
