ESMA REMINDS FUND MANAGERS OF THEIR OBLIGATIONS TO INVESTORS AMID THE WAR IN UKRAINE
16/05/2022 ESMA Visiter le site sourceESMA reminds fund managers of their obligations to investors amid the war in Ukraine. ESMA released a Public Statement on the implications of Russia’s invasion of Ukraine on investment fund portfolios.
ESMA recognises the human cost of Russia’s military aggression against Ukraine, and the significant challenges to business activities and effects on the global economic and financial system posed by the invasion. The statement, with the aim of promoting investor protection and convergence, provides overarching messages to fund managers including high level guidance on: the appropriate action in case of exposures to Russian, Belarusian and Ukrainian assets, given valuation and liquidity uncertainties; the process fund managers should follow when evaluating these assets; and whether it may be considered to use side pockets or similar arrangements to segregate these assets.
ESMA expects fund managers of investment funds with exposures to assets facing liquidity issues to assess whether a fair value of these assets can still be determined and adapt the valuation without undue delay.