CSSF implements IOSCO recommendation on liquidity risk management for investment funds

News

CSSF implements IOSCO recommendation on liquidity risk management for investment funds

8 January 2020

Regulatory News Alert

On 20 December 2019, the Commission de surveillance du secteur financier (CSSF) published Circular 19/733 (the Circular) with the objective to implement into Luxembourg regulation, the International Organization of Securities Commissions (IOSCO) recommendations and good practices on liquidity risk management for undertakings for collective investment (UCIs).

As provided in our previous alert on the topic, the IOSCO recommendations laid out to entities responsible for managing the liquidity of the collective investment schemes, are to ensure that liquidity is managed to safeguard and protect the interests of investors, including in stressed market conditions.

The IOSCO recommendations address in particular the following elements of the liquidity risk management process:

  • The design process of UCIs
  • The day-to-day liquidity management of UCIs 
  • Contingency planning.

The CSSF Circular defines the scope of application of the IOSCO recommendations and outlines immediate and mandatory compliance by in-scope entities with the recommendations and related IOSCO good practices for the implementation of a robust and effective liquidity risk management process for each of their managed open-ended UCIs.

 

How can Deloitte help?

Deloitte’s risk management specialists can assist you in reviewing or enhancing your liquidity risk management framework, with a particular focus on liquidity stress testing, asset liquidity assessment, and investor redemption modelling.

With our Regulatory Watch Kaleidoscope service, Deloitte helps you stay ahead of the regulatory curve to better manage and plan upcoming regulations.

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Contacts

Subject matter specialists

Sylvain Crepin
Partner – Financial Industry Solutions
Tel : +352 45145 4054
screpin@deloitte.lu

Lou Kiesch
Partner – Financial Industry Solutions
Tel : +352 45145 2456
lkiesch@deloitte.lu

Xavier Zaegel
Partner – Financial Industry Solutions
Tel : +352 45145 2748
xzaegel@deloitte.lu

Vincent Gouverneur
Partner – Financial Industry Solutions
Tel : +352 45145 2451
vgouverneur@deloitte.lu

Fabian De Keyn
Director – Capital Markets Expert
Tel : +352 45145 3413
fdekeyn@deloitte.lu

Gildas Blanchard
Senior Manager – Capital Markets Expert
Tel : +352 45145 2962
gblanchard@deloitte.lu
 


Regulatory Watch Kaleidoscope service

Simon Ramos
Partner – IM Advisory & Consulting
Leader and Regulatory Watch Co-Leader
Tel : +352 45145 2702
siramos@deloitte.lu

Benoit Sauvage
Director – Regulatory Watch Coordinator
Tel : +352 45145 4220
bsauvage@deloitte.lu

Marijana Vuksic
Manager – Strategy, Regulatory & Corporate Finance
Tel : +352 45145 2311
mvuksic@deloitte.lu

 

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