Service Investment Services 88% Cash Equivalents 75%
Specialism Prudential Standards 89% Governance 85%
2026-03-13 08:49:42 · adavies@vixio.com
ID
2961371
GUID
2b5e621133b6ae351471c5d75d5612d6

Classification

Service
Investment Services (88%)

The update establishes supervisory guidelines for liquidity management instruments used by UCITS and AIF fund managers to manage redemption risk and investor liquidity, which is a core investment services function involving client asset handling and fund management.

Cash Equivalents (75%)

Cash Equivalents is secondary because liquidity management instruments—including redemption gates, notice periods, and NAV pricing mechanisms—are tools used to preserve the cash-equivalent or liquid nature of fund assets during stress scenarios.

Specialism
Prudential Standards (89%)

The update establishes supervisory guidelines requiring fund managers to implement liquidity management instruments and risk controls, which falls under prudential standards for asset managers.

Governance (85%)

Mandatory inheritance: Prudential Standards requires Governance as a parent tag, reflecting the framework's governance and risk management oversight dimensions.

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Stored 08:49:41
TITLE: European Securities and Markets Authority Issues Guidelines on Liquidity Management Instruments for Undertakings for Collective Investment in Transferable Securities and Alternative Investment Funds BODY: On 12 March 2026, the European Securities and Markets Authority (ESMA) published guidelines on liquidity management instruments (LMI) for undertakings for collective investment in transferable securities (UCITS) and open alternative investment funds (AIFs). These guidelines implement requirements under Article 18a(2) of the UCITS Directive (2009/65/EC) and Articles 16(2)(b) and 16(2)(c) of the Alternative Investment Fund Managers Directive (AIFMD, 2011/61/EU), as amended by Directive (EU) 2024/927. The guidelines establish a consistent supervisory framework for fund managers' selection, calibration, activation and deactivation of liquidity management instruments across the European Union. Fund managers bear primary responsibility for liquidity risk management and must select at least two appropriate instruments from specified lists, considering factors including fund structure, investment strategy, underlying asset liquidity, stress test results, investor base characteristics and market conditions. The guidelines address both quantitative instruments—such as redemption gates, notice period extensions and redemption suspensions—and anti-dilution tools including redemption fees, variable net asset value (NAV) pricing, dual pricing and anti-dilution levies. Additional provisions cover redemptions in kind and segregated accounts for exceptional circumstances. Competent authorities must ensure compliance with these guidelines within their national regulatory frameworks and supervisory systems, with responsibility for monitoring that market participants adhere to the requirements. Competent authorities must notify ESMA within two months of publication whether they comply or plan to comply with the guidelines, providing reasons for any non-compliance. The guidelines apply from the date specified in the delegated regulatory technical standards referenced in the UCITS Directive and AIFMD, with a twelve-month transition period for pre-existing funds.
  • Scraped:2026-03-13 08:49:42
  • Created:2026-03-13 08:49:41
  • By:adavies@vixio.com (41)