LMA responds to ESMA consultation on draft RTS for open-ended loan originating AIFs
12 March 2025Today, we responded to ESMA’s consultation on the draft Regulatory Technical Standards on open-ended loan originating alternative investment funds.
The LMA welcomes ESMA’s approach in providing a harmonised implementing framework tailored to the specificities of OE LO AIFs, allowing managers to demonstrate to their respective NCAs that they can maintain an open-ended structure.
We believe that the framework should be aligned with market trends aimed at meeting investors’ increasing demands for alternative investment strategies with a liquid profile.
At the same time, the LMA stresses the importance of a measured approach not being overly prescriptive, specifically in relation to the authorisation process and (minimum) liquidity thresholds.
As the European Commission advances its work on the Savings & Investments Union (please see our response here), the treatment of private credit and alternative financing vehicles, such as OE LO AIFs, must be aligned with the overarching goal of enhancing the EU’s financial sovereignty and global competitiveness. A balanced regulatory framework that ensures investor protection and financial stability, while avoiding unnecessary constraints on market development, is essential to mobilising private capital for strategic sectors and fostering long-term economic growth.
To read the full response, please click here.
Should you wish to have a converststio with us, please reach out to Leyla.ghaffar-zadeh@lma.eu.com