Regulatory Alerts2025-10-21
Final Report on Draft Regulatory Technical Standards on Open-Ended Loan-Originating AIFs under the AIFMD
The European Securities and Markets Authority (ESMA) issued final draft Regulatory Technical Standards to define the liquidity management and redemption requirements for open-ended loan-originating Alternative Investment Funds under the AIFMD. Following a public consultation, ESMA removed the requirement for a fixed target amount of liquid assets, replacing it with a principle-based obligation to maintain sufficient liquidity, and reduced the mandatory frequency of liquidity stress tests from quarterly to annually. The revised standards also clarified that the rules apply to AIFMs currently managing such funds rather than those intending to, and the draft RTS have been submitted to the European Commission for adoption.
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