FUND 3.6 Liquidity

This section applies to a full-scope UK AIFM of:

1. (1)

   a UK AIF;

2. (2)

   an EEA AIF; and

3. (3)

   a non-EEA AIF.

An AIFM must ensure that the investment strategy, liquidity profile and redemption policy of each AIF it manages are consistent.

[Note: article 16(2) of AIFMD]

An AIFM must, for each AIF it manages that is not an unleveraged closed-ended AIF:

1. (1)

   employ an appropriate liquidity management system and adopt procedures which:

   1. (a)

      enable it to monitor the liquidity risk of the AIF; and

   2. (b)

      ensure that the liquidity profile of the investments of the AIF complies with the AIF's underlying obligations; and

2. (2)

   regularly conduct stress tests, under normal and exceptional liquidity conditions, which enable it to assess the liquidity risk of the AIF and monitor that risk.

[Note: article 16(1) of AIFMD]