On 12 March 2020, the Autoriteit Financiële Markten (AFM) announced it was conducting an European research into liquidity risk management among UCITS managers.
16 Apr 2020
In 2020, the Netherlands Authority for the Financial Markets (AFM) will conduct a European investigation into the management of liquidity risks among managers of collective investment schemes for securities (UCITS). The investigation is coordinated by European regulator ESMA.
Quantitative research and analyses
The research consists of two phases. The AFM first requests quantitative data from a large majority of Dutch UCITS managers. This provides the AFM with an overview of the liquidity risks of UCITS. The AFM then focuses on a sample of UCITS managers and UCITS for more in-depth analyzes.
Investigation by all European national supervisors
European supervisor ESMA coordinates the investigation. All European national supervisors conduct the investigation (a so-called common supervisory action or CSA) simultaneously and in coordination with each other. They are currently also doing this in a survey among investment firms into the suitability test in investment advice and asset management.
Consistent supervision and investor protection
The research has two objectives. First, it increases the consistency of supervision in Europe of liquidity risk management. It also helps protect investors in Europe.
This article was originally published in the March edition of REGWATCH. Read the full edition covering the following jurisdictions:
- European Union
- Hong Kong
- United Kingdom