EUROPE: Compliance Table – Guidelines on Liquidity Stress Testing in UCITS and AIFs

Friday January 22 2021

ESMA has published the updated Compliance Table for the Guidelines on liquidity stress testing in UCITS and AIFs. The majority of jurisdictions comply or intend to comply with the guidelines.

Poland have reported that they do not intend to comply giving the following explanation:

“On 12 August 2020, a letter from the KNF was sent to the investment fund management companies operating on the Polish market, informing of the KNF’s expectation that the entities will have ensured their compliance with the Guidelines on liquidity stress testing by 30 September 2021. We took into account the difficult situation of respective entities due to the COVID-19 crisis. However, liquidity issue is of highest importance to us. In time period March-May 2020 the KNF daily monitored liquidity situation of all funds in Poland and the redemptions. Only one small corporate fund suspended redemption for 2 months despite the fact that according to Polish law majority of bond funds could suspend redemption. Therefore I would like to underline that in the KNF’s opinion implementation of requirements stipulated in the Guidelines on liquidity stress testing in UCITS and AIFs will lead to the enhancement of liquidity management tools and in consequence will contribute to increasing security on the investment fund market in Poland. The KNF will comply with GL by 30 September 2021 and we shall then provide you with an updated notification.”

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