EU Regulatory Update

Author: Clerkin Lynch

Date Published 04/03/2022

ESMA CSA on Valuation of UCITS and AIFs

ESMA has launched a number of common supervisory actions (CSAs) in recent years. These are pan EU exercises launched in conjunction with the competent authorities in each member state, including the Central Bank in Ireland.

On 20th January 2022 ESMA announced the launch of a new CSA on the valuation practices undertaken on behalf of UCITS and open ended AIFs, to be conducted during 2022. This is the third such CSA to be launched to date. The core aim of this is to ensure consistent and effective supervision of valuation methodologies, policies and procedures across the EU in particular to ensure that less liquid assets are valued fairly during both normal and stressed market conditions.