Summary of CySEC's Circular C466

Memo #40-2021
CySEC Circular No: C466

Date: 30/08/2021
Subject: Updated version of the ESMA Guidelines on stress test scenarios under the MMF Regulation
Purpose: To inform AIFMs and UCITS Management Companies that ESMA issued an updated version of its Guidelines on stress test scenarios under the MMF Regulation.

In Summary:

CySEC has issued the Circular C466 on 30/08/2021 to inform the Cyprus based AIFMs and internally managed AIFs whose total asset under management (‘AuM’) exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the Alternative Investment Fund Managers Law (‘AIFM Law’) as the case may be, the Cyprus based AIFMs and internally managed AIFs whose Total AuM do not exceed the thresholds of Articles 4(2)(a) or 4(2)(b) of the AIFM Law, as the case may be, but have exercised the ‘opting-in’ possibility of Article 4(6) of the AIFM Law and the Cyprus based Management Companies of Common Funds and/or Variable Capital Investment Companies and internally managed UCITS in accordance with the provisions of Law 78(Ι)/2012 (‘UCITS Law’), that the European Securities and Markets Authority (‘ESMA’) issued on June 29, 2021, an updated version of its Guidelines on stress test scenarios under the MMF Regulation (‘the Guidelines’) with reference number ESMA34-49-291.

The Guidelines apply to: 
   i. national competent authorities, 
   ii. money market funds and 
   iii. managers of money market funds as defined in the MMF Regulation.

The CySEC notes that the parts of the Guidelines in red apply from two months after June the 29th, 2021. The other parts of the Guidelines already apply from the dates specified in Articles 44 and 47 of the MMF Regulation.

CySEC urges the Regulated Entities to whom these Guidelines apply, to make every effort to comply.

The Guidelines on stress test scenarios under the MMF Regulation (‘the Guidelines’) can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma34-49-291_2020_guidelines_on_mmf_stress.pdf 

The MMF Regulation can be found on the following link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017R1131&from=EN 

Read the CySEC Circular C466

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