CSSF steps up fund monitoring to prevent liquidity squeeze

European regulators are trying to prevent a liquidity crisis caused by excessive outflows from investment funds in the wake of the coronavirus crisis. The CSSF has joined other European regulators in asking asset managers for large amounts of information about their ability to repay investors.

French and German financial regulators are asking for daily updates on outflows from open-ended funds, while stock market watchdogs in Luxembourg and Ireland have also stepped up their oversight, the Financial Times reported on Monday.