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Aki Corsoni-Husain
Aki Corsoni-Husain
  • Aki Corsoni-Husain

  • Partner
  • Cyprus
George Apostolou
George Apostolou
  • George Apostolou

  • Partner
  • Cyprus
Chiara Deceglie
Chiara Deceglie
  • Chiara Deceglie

  • Partner
  • Luxembourg
Massimiliano della Zonca
Massimiliano della Zonca
  • Massimiliano della Zonca

  • Senior Associate
  • Luxembourg
Philip Graham
Philip Graham
  • Philip Graham

  • Partner
  • British Virgin Islands
Ayana Hull
Ayana Hull
  • Ayana Hull

  • Counsel
  • British Virgin Islands
Katerina Katsiami
Katerina Katsiami
  • Katerina Katsiami

  • Associate
  • Cyprus
Petros Kiteos
Petros Kiteos
  • Petros Kiteos

  • Associate
  • Cyprus
Andrew Knight
Andrew Knight
  • Andrew Knight

  • Partner
  • Luxembourg
Joshua Mangeot
Joshua Mangeot
  • Joshua Mangeot

  • Counsel
  • British Virgin Islands
Mirza Manraj
Mirza Manraj
  • Mirza Manraj

  • Counsel
  • Hong Kong
Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
  • Cyprus
Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

  • Partner
  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Consultant
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
  • Cyprus
Matt Taber
Matt Taber
  • Matt Taber

  • Partner
  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Senior Associate
  • Cayman Islands

ESMA consults on guidance to set leverage risk in the AIF sector

On 27 March 2020, the European Securities and Markets Authority (ESMA), the EU securities regulator, launched a public consultation on its draft guidance to address leverage risks in the Alternative Investment Fund (AIF) sector.

In its draft guidance, ESMA notifies that due to the rapid expansion of the investment fund sector and the higher risk-taking, in a context of low interest rates, it is of utmost importance to implement a framework for National Competent Authorities (NCAs) to monitor the level of leverage and deleveraging process of highly leveraged alternative investment funds.

The consultation is part of the ESMA response to the recommendations of the European Systemic Risk Board in April 2018 to address liquidity and leverage risk in investment funds.

It is acknowledged that funds not using leverage may also pose risks to financial stability.

ESMA will consider all comments received by 1 September 2020.

ESMA’s press release can be found here.

ESMA’s consultation on Guidelines can be found here.