Regulatory Alerts2026-03-12
Added · Updated
Guidelines on liquidity management tools of UCITS and open-ended AIFs
ESMA establishes guidelines for competent authorities and fund managers regarding the selection, calibration, and activation of liquidity management tools under Article 18a(2) of the UCITS Directive and Article 16(2b) and (2c) of the AIFMD. Fund managers must select at least two liquidity management tools, preferably one quantitative-based tool and one anti-dilution tool, while ensuring suspensions are used only in exceptional circumstances. The document specifies operational requirements for redemption gates, notice period extensions, redemptions in kind, and anti-dilution tools such as swing pricing and redemption fees. Competent authorities must notify ESMA of their compliance status within two months of publication, and the guidelines apply on the date the relevant RTS applies, with a twelve-month transition period for existing funds.
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