ICMA AMIC responds to ESMA consultation on liquidity stress testing guidelines

 

28 March 2019 ICMA’s Asset Management and Investors Council (AMIC) has today submitted a response to ESMA’s consultation on liquidity stress testing in UCITS and AIFs. AMIC is supportive of ESMA’s overall approach. However, AMIC cautions that some implementation time is necessary for firms to comply with the requirements. AMIC proposes 18 months implementation time for firms. AMIC also cautions against the use of the bid-ask spread as a liquidity measure for securities and warns that a lack of data on underlying investors make redemption stress testing difficult for asset managers.

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