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By Samuel CLERC, CFA & Pierre-Jean LACROIX, HACA Partners S.à.r.l.
Indisputably, liquidity risk is not a new topic in asset management. From a regulatory perspective, both UCITS and AIFM Directives release a set of requirements in relation to liquidity management which are designed to mitigate this risk. AIFM Directive, for instance, includes requirements and recommendations to the fund managers to put in place liquidity management processes and stress tests, especially for open-ended or leveraged funds.
Liquidity risk is subject to special attention and ongoing regulatory developments by regulators and supervisory authorities. We particularly refer to the liquidity risk management recommendations for investment funds published on July 18th, 2019...
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