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Directive 2011/61/EU - Alternative Investment Fund Managers Directive (AIFMD)RecitalsChapter I General provisions (arts. 1-5)Article 1 Subject matterArticle 2 ScopeArticle 3 ExemptionsArticle 4 DefinitionsArticle 5 Determination of the AIFMChapter II Authorisation of AIFMs (arts. 6-11)Article 6 Conditions for taking up activities as AIFMArticle 7 Application for authorisationArticle 8 Conditions for granting authorisationArticle 9 Initial capital and own fundsArticle 10 Changes in the scope of the authorisationArticle 11 Withdrawal of the authorisationChapter III Operating conditions for AIFMs (arts. 12-21)Section 1 General requirements (arts. 12-17)Article 12 General principlesArticle 13 RemunerationArticle 14 Conflicts of interestArticle 15 Risk managementArticle 16 Liquidity managementArticle 17 Investment in securitisation positionsSection 2 Organisational requirements (arts. 18-19)Article 18 General principlesArticle 19 ValuationSection 3 Delegation of AIFM functions (art. 20)Article 20 DelegationSection 4 Depositary (art. 21)Article 21 DepositaryChapter IV Transparency requirements (arts. 22-24)Article 22 Annual reportArticle 23 Disclosure to investorsArticle 24 Reporting obligations to competent authoritiesChapter V AIFMs managing specific types of AIF (arts. 25-30)Section 1 AIFMs managing leveraged AIFs (art. 25)Article 25 Use of information by competent authorities, supervisory cooperation and limits to leverageSection 2 Obligations for AIFMs managing AIFs which acquire control of non-listed companies and issuers (arts. 26-30)Article 26 ScopeArticle 27 Notification of the acquisition of major holdings and control of non-listed companiesArticle 28 Disclosure in case of acquisition of controlArticle 29 Specific provisions regarding the annual report of AIFs exercising control of non-listed companiesArticle 30 Asset strippingChapter VI Rights of EU AIFMs to market and manage EU AIFs in the Union (arts. 30a-33)Article 30a Conditions for pre-marketing in the Union by an EU AIFMArticle 31 Marketing of units or shares of EU AIFs in the home Member State of the AIFMArticle 32 Marketing of units or shares of EU AIFs in Member States other than in the home Member State of the AIFMArticle 32a De-notification of arrangements made for the marketing of units or shares of some or all EU AIFs in the Member States other than in the home Member State of the AIFMArticle 33 Conditions for managing EU AIFs established in other Member States and for providing services in other Member StatesChapter VII Specific rules in relation to third countries (arts. 34-42)Article 34 Conditions for EU AIFMs which manage non-EU AIFs which are not marketed in Member StatesArticle 35 Conditions for the marketing in the Union with a passport of a non-EU AIF managed by an EU AIFMArticle 36 Conditions for the marketing in Member States without a passport of non-EU AIFs managed by an EU AIFMArticle 37 Authorisation of non-EU AIFMs intending to manage EU AIFs and/or market AIFs managed by them in the Union in accordance with Article 39 or 40Article 38 Peer review of authorisation and supervision of non-EU AIFMsArticle 39 Conditions for the marketing in the Union with a passport of EU AIFs managed by a non-EU AIFMArticle 40 Conditions for the marketing in the Union with a passport of non-EU AIFs managed by a non-EU AIFMArticle 41 Conditions for managing AIFs established in Member States other than the Member State of reference by non-EU AIFMsArticle 42 Conditions for the marketing in Member States without a passport of AIFs managed by a non-EU AIFMChapter VIII Marketing to retail investors (arts. 43-43a)Article 43 Marketing of AIFs by AIFMs to retail investorsArticle 43a Facilities available to retail investorsChapter IX Competent authorities (arts. 44-55)Section 1 Designation, powers and redress procedures (arts. 44-49)Article 44 Designation of competent authoritiesArticle 45 Responsibility of competent authorities in Member StatesArticle 46 Powers of competent authoritiesArticle 47 Powers and competences of ESMADraft Article 47a ESMA review of large EU groups of AIFMs and management companiesDraft Article 47b Powers of ESMA to address cross-border issuesArticle 48 Administrative penaltiesArticle 49 Right of appealSection 2 Cooperation between different competent authorities (arts. 50-55)Article 50 Obligation to cooperateArticle 51 Transfer and retention of personal dataArticle 52 Disclosure of information to third countriesArticle 53 Exchange of information relating to the potential systemic consequences of AIFM activityArticle 54 Cooperation in supervisory activitiesArticle 55 Dispute settlementChapter X Transitional and final provisions (arts. 56-71)Article 56 Exercise of the delegationArticle 57 Revocation of the delegationArticle 58 Objections to delegated actsArticle 59 Implementing measuresArticle 60 Disclosure of derogationsArticle 61 Transitional provisionsArticle 62 Amendments to Directive 2003/41/ECArticle 63 Amendments to Directive 2009/65/ECArticle 64 Amendment to Regulation (EC) No 1060/2009Article 65 Amendment to Regulation (EU) No 1095/2010Article 66 TranspositionArticle 67 Delegated act on the application of Article 35 and Articles 37 to 41Article 68 Delegated act on the termination of the application of Articles 36 and 42Article 69-a Other reviewArticle 69 ReviewArticle 69a Assessment of the passport regimeArticle 69b Accessibility of information on the European single access pointArticle 70 Entry into forceArticle 71 AddresseesAnnexesAnnex IAnnex II Remuneration PolicyAnnex III Documentation and information to be provided in case of intended marketing in the home Member State of the AIFMAnnex IV Documentation and information to be provided in the case of intended marketing in Member States other than the home Member State of the AIFMAnnex V Liquidity management tools available to AIFMs managing open-ended AIFsDone at
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AI Summary of Article 16 Liquidity management

AIFMs must, for each AIF they manage that is not an unleveraged closed‑ended AIF, implement an appropriate liquidity management system and procedures to monitor liquidity risk, ensure the AIF’s liquidity profile of investments meets its obligations and conduct regular stress tests under normal and exceptional conditions. The investment strategy, liquidity profile and redemption policy must be consistent. Loan‑originating AIFs shall be closed‑ended unless the AIFM demonstrates to its home competent authority that an open‑ended structure is compatible; applicable thresholds in Regulations (EU) No 345/2013, 346/2013 and 2015/760 remain.

For open‑ended AIFs, AIFMs shall select at least two liquidity management tools from Annex V points 2–8 (one only permitted for authorised money market funds), include them in the AIF rules and adopt detailed activation/deactivation procedures; the selection cannot consist solely of Annex V points 5 and 6. Redemption in kind is limited to professional investors and generally pro rata, with specified exceptions. Suspension of subscriptions, repurchases or redemptions and use of side pockets are permitted only in exceptional cases in the interest of investors. Relevant activations/deactivations must be notified to the home competent authority, which shall inform host authorities, ESMA and, where systemic risks exist, the ESRB. ESMA shall develop draft RTS and guidelines by 16 April 2025 and submit RTS to the Commission; the Commission will adopt delegated acts specifying required liquidity management systems and the alignment of strategy, liquidity profile and redemption policy.

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Version status: Amended | Document consolidation status: Updated to reflect all known changes
Version date: 15 April 2024 - onwards
Version 3 of 3

Article 16 Liquidity management

DRAFT Paragraph replaced Article 2 Amendments to Directive 2011/61/EU of the Proposal for a Directive of the European Parliament and of the Council amending Directives 2009/65/EC, 2011/61/EU and 2014/65/EU as regards the further development of capital market integration and supervision within the Union (COM(2025) 942 final / 2025/0382 (COD))
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1. AIFMs shall, for each AIF that they manage which is not an unleveraged closed-ended AIF, employ an appropriate liquidity management system and adopt procedures which enable them to monitor the liquidity risk of the AIF and to ensure that the liquidity profile of the investments of the AIF complies with its underlying obligations.

AIFMs shall regularly conduct stress tests, under normal and exceptional liquidity conditions, which enable them to assess the liquidity risk of the AIFs and monitor the liquidity risk of the AIFs accordingly.

2. AIFMs shall ensure that, for each AIF that they manage, the investment strategy, the liquidity profile and the redemption policy are consistent.

2a. An AIFM shall ensure that the loan-originating AIF it manages is closed-ended.

By way of derogation from the first subparagraph, a loan-originating AIF may be open-ended provided that the AIFM that manages it is able to demonstrate to the competent authorities of the home Member State of the AIFM that the AIF's liquidity risk management system is compatible with its investment strategy and redemption policy.

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