Our latest Funds and asset management regulatory news supplements our General regulatory news with items specific to the funds and asset management industry. Read both to keep abreast of recent regulatory developments.

Contents

• ESMA guidelines on liquidity stress testing in UCITS and AIFs: FCA comment

ESMA guidelines on liquidity stress testing in UCITS and AIFs: FCA comment

Among other things covered in its latest Regulation round-up, the UK Financial Conduct Authority (FCA) comments on the European Securities and Markets Authority's guidelines on liquidity stress testing (LST) in UCITS and alternative investment funds (AIFs). These guidelines have applied since 30 September 2020. The FCA notes that the guidelines aim to increase the standard and consistency of LST by providing guidance on the design of models, governance and policies, and frequency of LST.

The FCA states that it expects fund managers and depositaries to have regard to the guidelines, according to the nature, scale and complexity of the fund, when conducting LST as required by the UCITS Directive and Alternative Investment Fund Managers Directive.

Managers of money market funds (MMFs) should comply with the ESMA guidelines on stress testing in MMFs that have applied since 4 May 2020.

[View source.]