Liquidity management; Authorisation to issue statutory instruments

(1) The capital management company must have an adequate liquidity management system for each investment fund it manages, unless it is a closed-ended investment fund for which no leverage is employed. The capital management company must establish procedures enabling it to monitor the liquidity risks of the investment funds, and must ensure that the liquidity profile of the investments of the investment fund matches the underlying liabilities of the investment fund.
(2) The capital management company must regularly conduct stress tests, applying both normal and exceptional liquidity conditions, enabling the assessment and monitoring of the liquidity risks of the investment funds.
(3) The capital management company must ensure that the investment strategy, the liquidity profile, and the redemption policy of each investment fund it manages are consistent with one another.
(3a) An AIF capital management company must ensure that loan-originating AIFs it manages are closed-ended funds. By way of derogation from the first sentence, a loan-originating AIF may be an open-ended fund, provided that the AIF capital management company that manages it can demonstrate to the Federal Institute that the liquidity risk management system of the AIF is compatible with the investment strategy and the redemption policy of the AIF capital management company. The requirement named in the first sentence applies without prejudice to the thresholds, restrictions, and conditions under Regulation (EU) No 345/2013, Regulation (EU) No 346/2013, and Regulation (EU) 2015/760.
(4) For AIF capital management companies, the criteria applicable, for the AIFs they manage, to the liquidity management systems and procedures, and to the consistency of investment strategy, liquidity profile, and redemption policy under subsection (3), are governed by Articles 46 to 49 of Delegated Regulation (EU) No 231/2013.
(5) The Federal Ministry of Finance is authorised to issue, by statutory instrument not requiring the consent of the Bundesrat, for capital management companies, in respect of retail AIFs, additional provisions supplementing the criteria named in subsection (4) set out in Articles 46 to 49 of Delegated Regulation (EU) No 231/2013, and, in respect of UCITS, more detailed provisions on liquidity management systems and procedures. The Federal Ministry of Finance may transfer this authorisation, by statutory instrument, to the Federal Institute.