ESMA sent its redrafted opinion on draft Regulatory Technical Standards on types of AIFMs to the EU Commission on 13 August, following receipt of the letter from the EU Commission inviting ESMA to redraft. In that letter the EU Commission expressed concern that the frequency of redemptions was to be used as criterion to distinguish between open-ended and closed-ended AIFs and opined that AIFs that redeem less frequently than on a yearly basis, should not be omitted from the type of open-ended AIF.

The redrafted opinion provides that an AIF shall be regarded as open-ended if it provides for redemptions before the commencement of its liquidation phase or wind-down. A decrease in the capital of the AIF for distribution purposes or whether an AIF’s shares or units can be negotiated on the secondary market (and are not repurchased or redeemed by the AIF) does not affect whether or not the AIF is of the open-ended type.