ALFI statement following the adoption by the European Parliament of the Directive amending the UCITS and AIFM Directives and the EU Regulation amending the European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF) Regulations
On 21 March 2019, the Romanian Presidency of the Council and the European Parliament announced that they had reached a provisional agreement on the reform of the European system of financial supervision, which includes in particular the three European Supervisory Authorities (ESAs).
ESMA has produced a set of fourteen (principles-based) draft guidelines for managers to fulfil when executing liquidity stress tests (LST) on their funds. Broadly, these guidelines set out that LST should: be tailored towards the individual fund, reflect the most applicable risks to a fund, be sufficiently extreme or unfavourable (yet plausible), sufficiently model how a manager is likely to act in times of stressed market conditions, and be embedded into the fund’s risk management framework. One guideline applies to depositaries, outlining how they should fulfil their obligations regarding LST. The guidelines were reinforced via a number of sections providing explanatory considerations for managers, to assist their compliance with the Guidelines.
On 7 March 2019, ALFI published to its members Guidelines on clearing and collateral arrangements in relation to OTC derivatives under EMIR requirements. An updated version of this document will be issued after the publication of the endorsed EMIR Refit text in the Official Journal of the European Union. Read the document.