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European Commission Speech Chișinău, 09 Jul 2024 Ladies and gentlemen,
It is a great pleasure to be in Chișinău today.
I would like to begin by thanking Minister Nemerenco, for an important discussion we had o...
The European Investment Bank (EIB) and Banca Sella have signed a €100 million financing agreement to support investments and the working capital and liquidity needs of small and medium businesses (SMEs) and mid-caps, focusing in particular on product and process innovation and projects in cohesion regions. Underpinning its support for local businesses, Banca Sella will provide an additional €100 million to what has been provided for under the agreement with the EIB, increasing the funds made available to small businesses and mid-caps to €200 million.
European Commission Daily news Brussels, 09 Jul 2024 Commission proposes decisions establishing the existence of excessive deficit for seven Member States
As part of the European Semester Spring package of June 20...
European Commission Press release Brussels, 09 Jul 2024 The European Commission has today raised €9 billion of EU-Bonds in its 7th syndicated transaction for 2024.
European Commission Press release Brussels, 09 Jul 2024 Today, the Commission proposed to mobilise €77 million from the agricultural reserve to support farmers from the fruit, vegetables and wine sectors.
European Commission Press release Brussels, 09 Jul 2024 The European Commission has opened an in-depth investigation to assess whether public support granted to the Slovak company NAJPI a.s. (‘NAJPI') for setting up a glass sand extraction site is in line with EU State aid rules.
European Commission Press release Brussels, 09 Jul 2024 Today, Moldova became the 38th country to sign the Joint Procurement Agreement in the area of health, during an official visit to Chisinau by Commissioner for health and food safety, Stella Kyriakides. Moldova is now the 6th EU candidate country to become part of the Agreement.
ESMA consults on Liquidity Management Tools for funds
08 July 2024
Fund Management
Press Releases
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is seeking input on draft guidelines and technical standards under the revised Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. Both Directives aim to mitigate potential financial stability risks and promote harmonisation of liquidity risk management in the investment funds sector.
Verena Ross, ESMA Chair, said:
“The revised AIFMD and UCITS Directive have introduced long-awaited provisions on the availability and use of Liquidity Management Tools. ESMA is now consulting on how to apply these provisions in practice. These new rules being proposed are in line with the latest global standards provided by the FSB and IOSCO, and will contribute to the strengthening of the EU regulatory and supervisory regime for investment funds.
By having the right implementing rules in place, we can make the EU framework for investment funds both more resilient and more efficient, supporting the development of attractive, effective and stable EU capital markets.”
In the draft Regulatory Technical Standards (RTS) on the characteristics of Liquidity Management Tools (LMTs) ESMA defines the constituting elements of each LMT, such as calculation methodologies and activation mechanisms. ESMA also publishes draft Guidelines on LMTs of UCITS and open-ended AIFs, providing guidance on how managers should select and calibrate LMTs, in light of their investment strategy, their liquidity profile and the redemption policy of the fund.
These draft RTS and guidelines are designed to promote convergent application of the Directives for both UCITS and open-ended AIFs and make EU fund managers better equipped to manage the liquidity of their funds, in preparation for market stress situations. Additionally, they intend to clarify the functioning of specific LMTs, such as the use of side pockets, a practice that currently varies significantly across the EU.
Next Steps
The publication of the two consultations is a key step in the implementation of the new AIFMD and UCITS Directive.
ESMA welcomes responses to the consultations by 8 October. Following this, ESMA will deliver the final RTS and guidelines by 16 April 2025.
Further information:
Cristina Bonillo
Senior Communications Officerpress@esma.europa.eu
08/07/2024
ESMA34-1985693317-1095
Consultation Paper on the Draft Regulatory Technical Standards on Liquidity Management Tools under the AIFMD and UCITS Directive
08/07/2024
ESMA34-1985693317-1097
Consultation Paper on the Guidelines on Liquidity Management Tools of UCITS and open-ended AIFs
08/07/2024
ESMA71-545613100-2561
ESMA consults on Liquidity Management Tools (LMT) for funds - Press Release
Consultation on Liquidity Management Tools for funds