The European Commission adopted on 17th December 2013 a Delegated Regulation supplementing the Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMs) of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision.

The Delegated Regulation specifies how to determine the open or closed nature of an alternative investment fund (AIF) which impacts the specific rules to be followed by AIFMs, such as liquidity management or valuation rules. The open or closed ended nature of the AIF will also have an impact on the application of the provisions applicable to AIFMs during the transitional period.

Within the meaning of the Delegated Regulation an open-ended AIF is a fund whose shares or units can be redeemed at the request of its shareholders according to the rules and frequency foreseen in its constitutional documentation and in any case before opening any dissolution or liquidation procedure. The Delegated Regulation also clarifies that a decrease of the fund's share capital resulting from distributions or negotiations of the shares on a secondary market without any reimbursement or redemption, is not taken into account to determine whether the AIF is open-ended or closed-ended.

For more detailed information, please visit the Alternative Investments section of the European Commission's website.