AMF Consultation on strengthening fund liquidity management tools

09/02/2022

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).

Head of Knowledge Management Strategy and Market Infrastructure - SGSS