Category Archives: Liquidity

The Challenges of Liquidity Stress Testing

It seems that ‘liquidity risk’ is the prevalent term on everyone’s lips these days. Following a turbulent 2019, with several high-profile fund suspensions, it is perhaps no surprise that liquidity is a 2020 priority for most regulators. The fund suspensions compounded with the ESMA’s Liquidity Stress Tests (LST) Guideline coming into force 30 September 2020 and the recent launch of a common supervisory action (CSA) on UCITS liquidity risk management demonstrate why liquidity risk is on every fund manager’s priority list.

The 16 ESMA Guidelines on Liquidity Stress Testing for UCITS and AIFs

On 2nd September 2019, the European Securities and Markets Authority (ESMA) published its final guidance regarding liquidity stress tests of investment fund…

Liquidity Risk: A 2020 Priority

Firms must have appropriate systems, controls and governance to oversee and manage liquidity risk. With the New Year well and truly underway, regulators across the globe have started publishing their priorities for the year ahead. Unsurprisingly, liquidity risk appears to be high up on most of their agendas

Should illiquid assets be held in open ended funds?

Fund liquidity, like a mirage in the desert, can disappear in an instant if not monitored and managed correctly. Events throughout this year have brought fund liquidity to the forefront – as we approach the end of 2019, it is clear we haven’t seen the last of liquidity risk in the headlines.