Summary of CySEC's Circular C403

Memo #46-2020

CySEC Circular No: C403
Date:10/09/2020

Subject: ESMA Guidelines on Liquidity Stress Testing in UCITS and AIFs
Purpose: To inform AIFMs and UCITS Management Companies that ESMA issued the official translations of Guidelines on Liquidity Stress Testing (‘LST’) in UCITS and AIFs.

In Summary:

CySEC has issued the Circular C403 on 10/09/2020 in order to inform the Cyprus based AIFMs and internally managed AIFs whose total asset under management (‘AuM’) exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the AIFM Law as the case may be, and the Cyprus based AIFMs and internally managed AIFs whose Total AuM do not exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the AIFM Law, as the case may be, but have exercised the ‘opting-in’ possibility of Article 4(6) of the AIFM Law and the Cyprus based Management Companies of Common Funds and/or Variable Capital Investment Companies and internally managed UCITS in accordance with the provisions of Law 78(Ι)/2012 (‘UCITS Law’), that the European Securities and Markets Authority (‘ESMA’) issued on July 16, 2020, the official translations in all EU official languages (including translation in the Greek language), of its Guidelines on Liquidity Stress Testing (‘LST’) in UCITS and AIFs (‘the Guidelines’) with reference number ESMA34-39-897 EN.

The Guidelines apply to managers, depositaries and NCAs.

In particular, the purpose of the Guidelines is to increase the standard, consistency and, in some cases, frequency of Liquidity Stress Testing already undertaken and promote convergent supervision of Liquidity Stress Testing by NCAs.

The Guidelines apply from 30 September 2020.

CySEC informs that has adopted the Guidelines and therefore urges the Regulated Entities to whom these Guidelines apply, to make every effort to comply.

The Guidelines on Liquidity Stress Testing (‘LST’) in UCITS and AIFs can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma34-39-897_guidelines_on_liquidity_stress_testing_in_ucits_and_aifs_en.pdf 


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