Regulatory risks associated with illiquid investments
Enforcement proceedings against portfolio managers recently published by FINMA have brought the risks associated with illiquid investments more firmly into the supervisory spotlight. In Guidance 03/2026, FINMA sets out in detail its expectations of portfolio managers regarding the use of financial instruments, emphasising the importance of a careful assessment of liquidity risks in individual portfolio management and investment advice. This article examines the requirements for managing liquidity risks in portfolio management, taking current practice into account.
