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ARTICLE · 30 OCTOBER 2025

ESMA Publishes Final Report And Draft RTS On Open-Ended Loan-Originating AIFs

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On 21 October 2025, ESMA published its final report to the European Commission (the Commission) with draft regulatory technical standards (RTS)...

IrelandFinance and Banking
Nicholas Blake-Knox
Nicholas Blake-Knox
Kate Kenneally
Kate Kenneally
Joe Mitchell
Joe Mitchell
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KEY TAKEAWAYS

  • In a welcome development, ESMA published its proposed Level 2 measures on the conditions for the operation of open-ended loan-originating alternative investment funds (OE LOFs) pursuant to the AIFMD II mandate.
  • The RTS set out a harmonised principles-based framework that AIFMs should address when seeking a derogation to offer OE LOFs.
  • Pending RTS adoption, it remains unclear whether EU national competent authorities (NCAs) will rely on the parameters set down by ESMA when assessing AIFM derogations from the closed-ended LOF requirement.

On 21 October 2025, ESMA published its final report to the European Commission (the Commission) with draft regulatory technical standards (RTS) under Directive 2024/927/EU (AIFMD II) on open-ended loan-originating alternative investment funds (OE LOFs), following its consultation as outlined in our December 2024 briefing.

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