On 5 February 2019, the European Securities and Markets Authority (“ESMA”) published a consultation paper (the “Consultation”) in respect of draft guidance on liquidity stress testing (“LST”) applicable to undertakings for collective investments in transferable securities (“UCITS”) and alternative investment funds (“AIFs”) (the “Guidance”).

The purpose of the Guidance is to encourage convergence of the supervision of LST by EU national competent authorities. The Guidance sets out 14 principles relevant to UCITS management companies and alternative investment fund managers (“Manager(s)”). The Guidance also sets out 1 principle for depositaries of UCITS and AIFs. On 8 April 2019, ESMA published responses from the industry to the Consultation.


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