Member States shall ensure availability to UCITS of the liquidity management tools set out in Annex IIA. A UCITS must select at least two appropriate tools from Annex IIA points 2–8, following assessment of its investment strategy, liquidity profile and redemption policy, and include them in its fund rules or instruments of incorporation; the selection may not consist only of points 5 and 6. By derogation, a money‑market fund authorised under Regulation (EU) 2017/1131 may select only one tool. UCITS must implement detailed activation/deactivation policies and operational arrangements and notify their home competent authority. Redemption in kind (Annex IIA point 8) may only be used for professional investors and generally must be pro rata, with derogations where the UCITS is marketed solely to professionals or is an ETF replicating an index (Dir 2014/65/EU, Art 4(1)(46)).

ESMA shall develop draft regulatory technical standards specifying the characteristics of the Annex IIA liquidity tools, taking account of diverse investment strategies and assets and without restricting UCITS’ ability to use appropriate tools across all asset classes, jurisdictions and market conditions. By 16 April 2025 ESMA shall issue guidelines on selection and calibration of liquidity management tools for liquidity risk management and mitigating financial stability risks, recognising that primary responsibility remains with UCITS and indicating circumstances for activation of side pockets (Annex IIA point 9), allowing adequate adaptation time. ESMA shall submit the draft RTS to the Commission by 16 April 2025, and the Commission is delegated powers to adopt those RTS under Articles 10–14 of Regulation (EU) No 1095/2010.