The AMF has updated its doctrine on liquidity management tools


Following the public consultation held in February 2022 on the strengthening of liquidity management tools requirements, the Autorité des Marchés Financiers (AMF) has published an update of its doctrine to clarify its requirements on the way these tools operate in collective investment undertakings (UCIs).

To encourage the introduction of a mechanism capping redemption requests (Gates), the AMF has implemented a transitional period until 31 December 2023, period during which holders may be informed of the introduction of Gates by any means.

Regarding Swing Pricing and acquired adjustable rights, the AMF doctrine has been amended to align the procedures for introducing acquired adjustable rights with those provided for Swing Pricing.

To streamline the doctrine on Gates, instruction DOC-2017-05 now provides a framework for the use of the Gates mechanism for all the UCIs concerned, as well as the specific practices of Real Estate UCIs and certain Private Equity funds open to subscriptions and redemptions at the request of investors (known as “Evergreen FCPR”).

Changes have also been made on other topics such as dedicated Alternative Investment Funds (AIFs) with the deletion of certain declarations sent annually by FIA Asset Managers to the AMF for statistical purposes.

Christian de Beaufort, Market Infrastructures & Regulation, Societe Generale Securities Services