EFAMA: Give fund managers the data 'toolkit' to improve liquidity stress testing

ESMA to publish new guidance by June

Regulators should provide European fund managers with the "toolkit" as well as the key data required to improve liquidity stress testing (LST) standards, according to the European Fund and Asset Management Association (EFAMA).

In a paper published in conjunction with the International Capital Market Association's Asset Management and Investors' Council (AMIC), EFAMA found regulatory standards for fund LST were "effective and robust" under both UCITS and AIFMD, and LST standards for EU investment funds were generally strong. NCI: Liquidity regulation leading to 'sub-optimal outcomes' for fund investors The paper therefore recommends that pan-European regulator ESMA need not consider more stringent standards in its ongoing work on guidance for national regulators with regard to LST. ESMA is set to publish ...