DOMESTIC

Liquidity - CBI letter to certain fund management companies on liquidity

The CBI issued a letter to fund management companies (FMCs) that were surveyed as part of the ESRB/ ESMA liquidity risk project. While the letter was specific to this set of firms and a sub-set of funds they manage, the findings from the ESMA Review are important and should be noted by all firms.

EU & INTERNATIONAL

ESMA CSA on UCITS liquidity risk management highlights areas for vigilance

ESMA published the results of the 2020 Common Supervisory Action (CSA) on UCITS liquidity risk management. The CSA showed that the overall level of compliance with the applicable rules is satisfactory in most cases, but there is scope for improvement in liquidity management for some UCITS.

ESMA guidelines on performance fees

ESMA published an updated version of its Q&As on the application of the AIFMD and its Q&As on the application of UCITS Directive. The new Q&As provide clarification on the:

  • crystallisation of performance fees
  • timeline of the application of the performance reference period
  • scope of the guidelines in respect of European long-term investment funds (ELTIFs)

Money Market Funds Regulation reform

ESMA issued a consultation on potential reforms of the EU Money Market Funds Regulation.