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ARTICLE · 26 JULY 2024

Consultation On Liquidity Management Tools Under AIFMD And UCITS

Arthur Cox
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Changes to the AIFMD and UCITS Directives which introduce a harmonised framework for the use of liquidity management tools ("LMTs")...

IrelandFinance and Banking
Kevin Murphy
Kevin Murphy
Tara O'Reilly
Tara O'Reilly
Ian Dillon
Ian Dillon
Dara Harrington
Dara Harrington
Cormac Commins
Cormac Commins
Siobhan McBean
Siobhan McBean
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Background

Changes to the AIFMD and UCITS Directives which introduce a harmonised framework for the use of liquidity management tools ("LMTs") must be implemented into EU member state law by 16 April 2026. The European Securities and Markets Authority ("ESMA") initiated a consultation on 8 July 2024 on related guidelines (the "Guidelines") and regulatory technical standards ("RTS").

Stakeholders are invited to submit comments on the Guidelines and the RTS by 8 October 2024, and ESMA expects to publish the final Guidelines and RTS by 16 April 2025.

We have summarised below some of the key points of the draft Guidelines and RTS.

LMTs and how they are selected for use

The LMTs set out below will be available to AIFMs managing open-ended alternative investment funds ("AIFs") and UCITS management companies (the "manager"). For the most part, the Guidelines and RTS do not differ significantly in their application to open-ended AIFs and UCITS.

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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