ESMA have been seeking input on draft Guidelines and Regulatory Technical Standards (RTS) for liquidity management tools (LMTs) under the revised AIFMD and UCITS Directive.
The draft RTS specify the characteristics of the LMTs. ESMA defines the constituting elements of each LMT, such as calculation methodologies and activation mechanisms.
The draft Guidelines provide guidance on how managers should select and calibrate LMTs, in light of their investment strategy, their liquidity profile and the redemption policy of the fund.
AREF liaised with INREV on a response to these consultations and submitted the following responses before 8 October 2024.
Over-arching views regarding the ESMA LMT consultations
Reply form to the consultation on Guidelines for LMTs of UCITS and open-ended AIFs
Reply form to the consultation on RTS for LMTs under the revised AIFMD and UCITS Directive
AREF's Public Policy Committee have overseen AREF's response to the consultations.
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