The European Commission has published two Delegated Regulations in the Official Journal of the European Union (OJ): (i) Delegated Regulation (EU 2026/465), supplementing the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFMD); and (ii) Delegated Regulation (EU 2026/466) supplementing the Undertakings for Collective Investment in Transferable Securities Directive (Directive 2009/65/EC) (UCITS Directive). These Delegated Regulations lay down regulatory technical standards (RTS) specifying the characteristics of liquidity management tools (LMTs), following the recent amendments made to the AIFMD and the UCITS Directive by Directive (EU) 2024/927 (AIFMD II).
The RTS specify the characteristics of the LMTs set out in the Annexes to the Directives, including suspension of subscriptions, repurchases and redemptions, redemption gates, extension of notice periods, redemption fees, swing pricing, dual pricing, anti-dilution levy, redemption in kind and side pockets. Under the amended Directives, managers must select at least two LMTs from the harmonised list for potential use, taking into account the fund's investment strategy, liquidity profile and redemption policy. The Delegated Regulations were first adopted on 17 November 2025, which we covered separately here. They both enter into force on 19 March, being the 20th day following publication in the Official Journal of the European Union, and will apply from 16 April.
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