ESMA - European Securities and Markets Authority

12/12/2024 | Press release | Distributed by Public on 12/12/2024 08:52

ESMA consults on open-ended loan originating alternative investment funds

The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, has published a consultation paper on draft regulatory technical standards on open-ended loan originating AIFs under the revised Alternative Investment Fund Managers Directive (AIFMD).

The consultation aims to receive feedback on the draft RTS that set out the requirements with which loan-originating Alternative Investment Funds (AIFs) shall comply to maintain an open-ended structure.

AIFMD review has introduced some harmonised rules on loan originating funds. The goal of these rules is to provide a common implementing framework for AIFMs and NCAs by determining the elements and factors that AIFMs need to consider when making the demonstration to their NCAs that the loan originated AIFs they manage can be open-ended.

According to the revised AIFMD, loan-originating AIFs shall be closed-ended unless their manager can demonstrate to its home national competent authority (NCA) that their liquidity risk management system is compatible with their investment strategy and redemption policy.

Next steps

ESMA will receive responses to this consultation until 12 March 2025 and intends to finalise the draft RTS by Q3/Q4 2025.

Further information:

Cristina Bonillo

Senior Communications Officer
[email protected]