Summary of CySEC's Circular C521

Memo #32-2022
CySEC Circular No: C521
Date: 01/07/2022
Subject: Updated version of the ESMA Guidelines on stress test scenarios under the MMF Regulation
Purpose: To remind Regulated Entities that ESMA issued an updated version of its Guidelines on stress test scenarios under the MMF Regulation.

In Summary:

CySEC has issued the Circular C521 on 01/07/2022 to inform the Alternative Investment Fund Managers (AIFMs) and the UCITS Management Companies, that the European Securities and Markets Authority (‘ESMA’) issued on May 4, 2021, an updated version of its Guidelines on stress test scenarios under the MMF Regulation (‘the Guidelines’) with reference number ESMA34-49-446, in the official translations in all EU official languages.

The Guidelines apply to: 
i. national competent authorities, 
ii. money market funds and 
iii. managers of money market funds as defined in the MMF Regulation.

The Guidelines apply in relation to Article 28 of the MMF Regulation.

The Guidelines applied from 4 June 2022 with respect to the parts in the Guidelines shown in red. The other parts of the Guidelines already apply from the dates specified in Articles 44 and 47 of the MMF Regulation.

CySEC urges the Regulated Entities to whom these Guidelines apply, to make every effort to comply.

For this Circular C521, the term Alternative Investment Fund Managers (AIFMs) includes a) 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 Alternative Investment Fund Managers Law (‘AIFM Law’) as the case may be, and b) 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.

For this Circular C521, the term UCITS Management Companies includes 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’).

The ESMA Guidelines on stress test scenarios under the MMF Regulation with reference number ESMA34-49-446 can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/guidelines_on_mmf_stress_tests_2021_update.pdf 

The MMF Regulation can be found on the following link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017R1131&from=EN

Read the CySEC Circular C521

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