A. The ESMA Guidelines state that the liquidity stress testing policy should be documented within the UCITS Risk Management Process. However, it is the UCITS management company which is required to have a risk management policy which enables the management company to assess, for each UCITS it manages, the exposure of the UCITS to market, liquidity and counterparty risks, and the exposure of the UCITS to all other risks, including operational risks, which may be material for each UCITS. UCITS management companies are required to conduct, where appropriate, periodic stress tests and scenario analyses to address risks arising from potential changes in market conditions that might adversely impact each UCITS it manages. As such, it may be appropriate for the liquidity stress testing policy to be documented withi

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