On August 20, the European Securities and Markets Authority (ESMA) published the opinion it submitted to the European Commission about draft regulatory technical standards (RTS) required under Article 4(4) of the Alternative Investment Fund Managers Directive (AIFMD).

The opinion comes after the Commission’s concerns about ESMA’s approach to the differentiation between open and closed-ended alternative investment funds (AIFs) in the draft RTS. To alleviate the concerns, ESMA has submitted an amended version of the draft RTS for the Commission’s consideration, which are contained in Annex I to the opinion.

Under the amended RTS, the key element for the identification of an open-ended AIF is the existence of repurchases or redemptions of the AIF’s shares or units prior to the commencement of its liquidation phase or wind-down, provided that the repurchases or redemptions happen at the investors’ request. Opinion.