CYPRUS: ESMA Guidelines on Liquidity Stress Testing in UCITS and AIFs

On 10^th September 2020, the Cyprus Securities and Exchange Commission (‘CySEC’) issued a circular concerning ESMA Guidelines on Liquidity Stress Testing in UCITS and AIFs.

The Guidelines apply to managers, depositaries and NCAs.

The purpose of these Guidelines is to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform and consistent application of Union law. In particular, their purpose is to increase the standard, consistency and, in some cases, frequency of LST already undertaken and promote convergent supervision of LST by NCAs.

The Guidelines apply from 30 September 2020.

CySEC has adopted the Guidelines and is therefore urging Regulated Entities to whom these Guidelines apply, to make every effort to comply.