More Changes For UCITS And AIFs On The Horizon

• Published date: 12 December 2025
• Law Firm: Matheson
• Author: Matheson LLP

The European Commission's proposals to address the fragmentation and underperformance of EU capital markets, focusing on market integration and efficient supervision, will introduce changes for UCITS and AIFs with a view to simplifying requirements and reducing unnecessary regulatory and administrative burdens.

Fund managers have spent recent months preparing for the transposition and implementation of AIFMD 2.0, the directive amending the Alternative Investment Funds Mangers Directive ("AIFMD") and the UCITS Directive, which is due to be transposed by EU member states by 16 April 2026. The revised investment funds framework, introducing new rules relating to the use of liquidity management tools and a new harmonised regime for loan originating alternative investment funds, has not yet been fully implemented, but it is already being targeted for further changes as a result of the European Commission's ("Commission") market integration package, published on 4 December 2025.

The market integration package includes a proposed directive ("Proposed Directive") amending the AIFMD, UCITS Directive and the Markets in Financial Instruments Directive ("MiFID") and a proposed regulation ("Proposed Regulation") amending the supervisory powers of the European Securities and...