The Financial Supervisory Authority (FIN-FSA) of Finland has stated that there remains room for improvement in procedures at firms related to the management of the liquidity of Undertakings for Collective Investments in Transferable Securities.

The regulator has written: "Management companies are responsible for ensuring an adequate level of liquidity risk management for UCITS, both in normal and extraordinary market conditions." This warning comes despite the fact that Finnish UCITS did not have liquidity-related trouble during the market conditions caused by the pandemic last spring, even though many were staring large redemptions in the face. The regulator is nonetheless worried about mancos making their UCITS invest in illiquid or less liquid assets.

Last year the FIN-FSA carried out two thematic reviews concerning liquidity risk management in investment funds, both of which were part of initiatives co-ordinated by the European Securities and Markets Authority (ESMA).