In a new report released on Friday 13 November, the European Securities and Markets Authority (ESMA) asked managers of harmonised investment funds in the EU to better prepare for possible future adverse shocks that could lead to a deterioration in the liquidity of financial markets.
At the beginning of the Covid-19 pandemic (see EUROPE B12461A12), ESMA had already noted that a number of investment funds were showing “signs of stress”.
The report responds to the recommendation of the...