{"id":113421,"date":"2025-02-13T16:30:32","date_gmt":"2025-02-13T15:30:32","guid":{"rendered":"https:\/\/www.afg.asso.fr\/afgs-responses-to-iosco-consultations-on-liquidity-risk-management\/"},"modified":"2025-02-13T16:53:40","modified_gmt":"2025-02-13T15:53:40","slug":"afgs-responses-to-iosco-consultations-on-liquidity-risk-management","status":"publish","type":"post","link":"https:\/\/www.afg.asso.fr\/en\/afgs-responses-to-iosco-consultations-on-liquidity-risk-management\/","title":{"rendered":"AFG&#8217;s responses to IOSCO consultations on liquidity risk management"},"content":{"rendered":"\n<p>IOSCO (International Organization of Securities Commissions) has launched two joint consultations on this topic, to coincide with the update of its recommendations on liquidity risk management. Recommendation 3 stresses the need to maintain consistency between the liquidity offered by an open-ended fund and the liquidity of its investment portfolio. To this end, it requires funds to be grouped into three categories according to the liquidity of the instruments in their assets (the so-called liquidity bucketing approach). The frequency of net asset values will depend on the category in which the fund is classified.<\/p>\n\n\n\n<p>In its response, the AFG stresses several points:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The liquidity of a security varies over time;<\/li>\n\n\n\n<li>The liquidity of a portfolio should not be assessed on a security-by-security basis, but on a fund-wide basis;<\/li>\n\n\n\n<li>Portfolio liquidity (which is variable) is not the only parameter to be taken into account when determining NAV frequency (which is fixed in the prospectus).<\/li>\n\n\n\n<li>In terms of liquidity risk management, European funds benefit from a comprehensive, robust and effective European regulatory framework. And this framework is currently complemented by the mandatory deployment of two liquidity management tools.<\/li>\n<\/ul>\n\n\n\n<p>In conclusion, the AFG believes that, in Europe, this classification will bring no added value.<\/p>\n\n\n\n<div class=\"wp-block-columns alignwide are-vertically-aligned-center is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-buttons alignwide is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-75 is-style-cyan\"><a class=\"wp-block-button__link has-white-color has-blue-background-color has-text-color has-background has-link-color has-text-align-center wp-element-button\" href=\"https:\/\/www.afg.asso.fr\/en\/publication\/reponse-de-lafg-sur-les-orientations-de-loicv-pour-une-mise-en-oeuvre-efficace-des-recommandations-en-matiere-de-gestion-du-risque-de-liquidite\/\" style=\"border-style:none;border-width:0px;border-radius:46px;padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--60);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--60)\" target=\"_blank\" rel=\"noreferrer noopener\">AFG response on IOSCO guidance for effective implementation of the recommendations for LRM<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons alignwide is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-75 is-style-cyan\"><a class=\"wp-block-button__link has-white-color has-blue-background-color has-text-color has-background has-link-color has-text-align-center wp-element-button\" href=\"https:\/\/www.afg.asso.fr\/en\/publication\/reponse-de-lafg-aux-consultations-oicv-sur-la-gestion-du-risque-de-liquidite\/\" style=\"border-style:none;border-width:0px;border-radius:46px;padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30)\" target=\"_blank\" rel=\"noreferrer noopener\">AFG\u2019s response on the review on UCITS eligible assets directive<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IOSCO (International Organization of Securities Commissions) has launched two joint consultations on this topic, to coincide with the update of&hellip;<\/p>\n","protected":false},"author":6,"featured_media":111131,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_gspb_post_css":"","wds_primary_category":1,"footnotes":""},"categories":[1],"tags":[],"thematics":[134,100],"top_contenu":[44,45],"class_list":["post-113421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-non-classe","thematics-gestion_financiere_et_management_du_risque","thematics-risque_de_liquidite","top_contenu-top-contenu-espace-membre","top_contenu-top-contenu-home-page"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/posts\/113421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/comments?post=113421"}],"version-history":[{"count":0,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/posts\/113421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/media\/111131"}],"wp:attachment":[{"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/media?parent=113421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/categories?post=113421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/tags?post=113421"},{"taxonomy":"thematics","embeddable":true,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/thematics?post=113421"},{"taxonomy":"top_contenu","embeddable":true,"href":"https:\/\/www.afg.asso.fr\/en\/wp-json\/wp\/v2\/top_contenu?post=113421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}