ESMA Guidelines on Liquidity Management Tools for UCITS and AIFs

The CSSF circular formally transmits and applies ESMA Guidelines on Liquidity Management Tools for UCITS and open-ended AIFs to Luxembourg-regulated investment fund managers. The guidelines cover liquidity risk management frameworks, swing pricing, redemption gates, and other LMTs available to fund managers. This implementation brings Luxembourg into alignment with ESMA's harmonised approach to liquidity management across EU member states.

Affected entities include investment fund managers, SIF managers, UCITS management companies, and Part II UCI managers operating in Luxembourg. These parties must review their current liquidity management frameworks and make necessary adjustments to comply with ESMA's guidelines within the stated six-month implementation period. Non-compliance may result in supervisory action by the CSSF.