ESMA is consulting on draft technical standards on types of AIMFs under AIFMD. It seeks to distinguish AIFMs managing open-ended funds from those managing closed-ended ones, as this will affect the application of rules on liquidity management and valuation. It proposes that funds will be open-ended when unitholders or shareholders can redeem their units or shares at least once a year and at a price that does not vary significantly from the fund’s net asset value at the time of the transaction. In a separate but related consultation, ESMA has presented draft guidelines on key concepts under AIFMD, which seek clarifications on different elements in the definition of alternative investment funds, such as “raising capital”, “collective investment undertaking”, “number of investors” and “defined investment policy”. (Source: Draft Regulatory Technical Standards on Types of AIFMs and Guidelines on Key Concepts of the AIFMD)