Consultation: Proposed liquidity risk management guidance

This proposed guidance outlines the essential features for effective liquidity risk management (LRM) and indicates what the FMA considers to be ‘good practice’. It is designed to assist MIS managers and Supervisors at all stages of fund management, from fund design to day-to-day liquidity management and contingency planning, and particularly at times of heightened market uncertainty and volatility. 

This guidance will update and replace the Liquidity risk management good practice guide to reflect international policy recommendations by the International Organization of Securities Commissions (IOSCO) and the Financial Stability Board, and to state the areas where MIS managers and Supervisors need to do more.