ESMA Liquidity Stress Testing Guideline

ESMA has published Guidelines on Liquidity Stress Testing which apply from 30 September 2020. Both UCITS management companies and AIFMs will be required to comply with these guidelines which set out common parameters to be complied with when designing and conducting liquidity stress testing and which are intended to supplement the existing legislative requirements under the UCITS and AIFMD frameworks to conduct liquidity stress testing.