The Securities Superintendency of the Central Bank of Paraguay (BCP) has opened a public consultation on draft Regulations on Liquidity Risk Management for Investment Funds.

The initiative, announced through Circular SV.SG. No. 015/2026, forms part of the development of implementing regulations under Law No. 7,572/2025 on the Securities and Products Market.

The draft addresses a key challenge in investment fund management: ensuring that obligations to investors can be met appropriately, including under financial stress.

What does the proposal cover?

The main areas covered include liquidity risk governance, alignment between asset liquidity and redemption terms, valuation criteria, liquidity management tools and stress testing.

These matters are particularly relevant for funds that offer periodic redemptions while investing in assets that may take longer to liquidate.

Managing this mismatch appropriately is essential to protecting investors and maintaining the stability of investment vehicles.

What could this mean for fund managers?

If adopted, the new regulations could require fund managers to review their internal policies, risk measurement methodologies, control procedures and arrangements for managing exceptional liquidity conditions.

It will also be important to assess whether the characteristics of portfolio assets are consistent with the terms offered to unitholders.

These matters may have both operational and contractual implications, particularly for funds’ internal rules and the information provided to investors.

A capital markets law perspective

The development of the investment fund market requires a regulatory framework that supports its growth and adequately protects market participants’ interests.

Liquidity rules should therefore be viewed not only as prudential obligations but also as tools to strengthen transparency, governance and investor confidence.

It is particularly important for the future framework to reflect the characteristics of the Paraguayan market, including the depth and liquidity of the instruments available for investment.

The Superintendency has opened the public consultation until October 30, 2026, allowing supervised entities and other interested parties to submit comments before the regulations are approved.