AMIC and EFAMA update their report on managing fund liquidity risk in Europe

22 January 2020

The updated report shows that since 2016, the EU regulatory framework has been further enhanced following the adoption of new rules and standards.

In light of recent idiosyncratic events, this AMIC/EFAMA report update is an opportunity to highlight that the UCITS regulatory framework clearly states that there should be no presumption of liquidity for listed securities and that it allows national competent authorities to oversee where hitherto unlisted securities held by a UCITS fund may be listed.

The report also describes how this new comprehensive framework has been tested under various market conditions and scenarios in a number of recent publications, which show that, overall, most AIFs and UCITS do not have significant liquidity mismatches and that a one-size-fits-all approach must therefore be avoided.

Finally, the report articulates four recommendations:

Full press release on EFAMA

Full report on EFAMA


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