AMF Consultation on strengthening fund liquidity management tools
The French Financial Markets Authority (AMF) is submitting to a public consultation from 8 February to 15 March measures to encourage the adoption of existing liquidity management tools (gates, swing pricing, adjustable rights).
It wants to create the conditions conducive to a greater adoption of these tools during 2023 while guaranteeing good information for holders.
Its proposals have several objectives:
rebalance the information asymmetry between funds that do not have liquidity management tools and those that do,
facilitate the adoption of gates by existing funds by opening a transitional period during which they can provide information covering several funds and no longer individual information per fund,
hold asset managers accountable for meeting their professional obligations in terms of managing the liquidity risk of the funds by requiring at least a formal recognition of the risks incurred by funds not equipped with a liquidity management tool in the event of exceptional market circumstances.
Click here to read the official communication (in French).