IE - Common Supervisory Action on UCITS Liquidity Risk Management


On 18 May 2021 the Central Bank of Ireland published an industry letter (the "Dear Chair Letter") following the European Securities and Markets Authority ("ESMA") project to review liquidity risk management frameworks for UCITS.

The Letter closely follows ESMA's Public Statement issued in March 2021 at the conclusion of its Common Supervisory Action on UCITS liquidity risk management where ESMA has identified several desired important improvements. As such this letter is to be read in conjunction with the ESMA public statement but also with the results of the implementation of the ESRB recommendation on liquidity risks in investment funds. The Dear Chair Letter is addressed to all UCITS management companies and requires them to carry out documented reviews of their activities, practices, documentation, systems and controls. The review should be completed, along with an action plan approved by the board of each UCITS manager by the end of Q4 2021.

Head of Knowledge Management Strategy and Market Infrastructure - SGSS