Recital 3

(3)Under Article 18(2), first subparagraph, point (b), of Regulation (EU) 2015/760, the manager of the ELTIF is to be able to demonstrate to the competent authority of the ELTIF that the ELTIF has in place an appropriate redemption policy and liquidity management tools that are compatible with the long-term investment strategy of the ELTIF. One way of achieving that objective is by analysing the results, assumptions and inputs used for liquidity stress tests when those are carried out in accordance with Article 15(3), point (b), or Article 16(1) of Directive 2011/61/EU of the European Parliament and of the Council ² . The results of that analysis should enable managers of ELTIFs to demonstrate whether and how, in severe but plausible scenarios, the ELTIF is able to deal with redemption requests. Those results should also enable the competent authorities to assess those scenarios for the assets and liabilities, including redemption and collateral shocks, and the decrease in the value of the assets in those stress scenarios.