On 30 January 2020, the European Securities and Markets Authority (ESMA) announced that it is launching a Common Supervisory Action (CSA) with national competent authorities (NCAs) on the supervision of UCITS’ managers liquidity risk management across the European Union. The CSA will be carried out during 2020.
To support this aim, NCAs have agreed to simultaneously assess whether market participants in their jurisdictions adhere to the rules in their day-to-day business. This will be conducted using a common methodology developed together with ESMA.
The first stage of the CSA will involve NCAs requesting quantitative data from a majority of UCITS managers based in their respective Member States, to provide an overview of the supervisory risks they face. In the second stage, NCAs will focus on a sample of UCITS managers and UCITS to carry out more in-depth supervisory analyses.