Latest Update
October 13, 2020
Introduction
On September 18, 2020, the Canadian Securities Administrators (the “CSA”) issued CSA Staff Notice 81-333 – Guidance on Effective Liquidity Risk Management for Investments Funds (the “Staff Notice”) to provide investment fund managers (“IFMs”) with practical guidance on developing and maintaining an effective liquidity risk management (“LRM”) framework for the asset pools they administer.
In the Staff Notice, the CSA define liquidity risk as a liquidity/redemptions mismatch resulting in a fund being unable to satisfy the redemption requests of its investors without materially impacting the remaining securityholders of the fund.
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