On 24 March 2021, the European Securities and Markets Authority (ESMA) issued the results of its 2020 common supervisory action (CSA) on UCITS liquidity risk management. The CSA shows that the overall level of compliance with the applicable rules is satisfactory in most cases, but there is scope for improvement for some of the UCITS analysed. The CSA also highlights areas where ESMA will work to further promote convergence across Member State national competent authorities. To further improve the quality of liquidity risk management processes, market participants should critically review their liquidity risk management frameworks to ensure that none of these adverse supervisory findings exist in their frameworks

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