French AFG Publishes Guidelines on Use of Stress Tests by Management Companies

June 24, 2015

The AFG (the association representing French management companies) published guidelines on 7 May 2015 regarding the use of stress tests for risk valuation by management companies. The guidelines are aimed at helping the AFG’s members set out the regulatory stress tests applicable to collective investment schemes, which have been implemented by EU regulators under their national laws. The AFG’s principles concerning stress testing practices focus on proportionality, correlation, tolerance level, thresholds for reverse stress tests, and disclosure of results.

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