During the stress period caused by the Covid-19 crisis in the spring of 2020, large redemptions were observed for investment funds. As the stress period was not long, the liquidity of the funds was generally not in jeopardy, but some studies drew attention to the over-optimism of fund managers, inadequate risk management methods, and organizational problems. At the same time some regulatory issues became relevant. In this newsletter, we summarize the observations of ESMA and the English supervisor on the shortcomings of risk management practices, liquidity management tools, and pricing solutions
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