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European Union

AIFMD 2: Practical compliance roadmap for EU and non‑EU AIFMs on loan origination, liquidity management tools, delegation, depositaries, reporting and disclosures, third‑country marketing, conflicts of interest, and grandfathering

Published on: 02 March 2026

Published by a Law360 reporter
Legal News
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Article summary

While most of the prescriptive measures are aimed at European Union Alternative Investment Fund Managers (AIFMs), non‑EU AIFMs will also need to amend pre‑contractual disclosures, regulatory reporting and periodic reporting so that the new reporting elements are included. This article highlights the principal action points AIFMs should consider before the swiftly approaching implementation deadline.

What AIFMs need to do

AIFMD 2 establishes a fresh loan origination framework to enable cross‑border lending, creating obligations for EU AIFMs. These obligations sit alongside the prescriptive measures primarily directed at EU AIFMs and require early focus.

Loan Origination Activities and Loan-Originating AIFs

Common rules apply to alternative investment funds (AIFs) that originate loans, covering borrower due diligence, concentration limits, a ban on originate‑to‑distribute strategies, and no lending to retail. More exacting standards attach to AIFs that are loan‑originating AIFs, including leverage limits, a liquidity policy and liquidity stress‑testing requirements. Complying with these measures will necessitate updates to fund documents and to internal systems and controls...

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