ALFI responds to the ESMA consultation on the regulatory technical standards on liquidity management under the AIFMD and UCITS Directive

On 8 July, the ESMA launched a consultation draft regulatory technical standards (RTS) to determine the characteristics of liquidity management tools (LMTs) available to AIFMs managing open-ended AIFs and to UCITS.

The response assesses the operational impact of the definition provided for the list of Liquidity Management Tools:

• Suspension of subscriptions, repurchases and redemptions
• Redemption gates
• Extension of notice periods
• Redemption fees
• Swing pricing
• Dual pricing
• Anti-dilution levy
• Redemptions in kind
• Side pockets

and advocates for adjustments where appropriate to reflect industry models with the objective to ensuring the effective adoption of the tools in investors best interest.

View the ALFI response.