AIFMD 2 on its way to implementation in Luxembourg

With the publication of draft bill N°8628 (Bill) on 3 October 2025, Luxembourg has officially started the implementation process of Directive (EU) 2024/927 amending Directives 2011/61/EU and 2009/65/EC as regards delegation arrangements, liquidity risk management, supervisory reporting, the provision of depositary and custody services and loan origination by alternative investment funds (AIFMD 2) by the amendment of the Luxembourg laws of 12 July 2013 on alternative investment fund managers (AIFM Law) and 17 December 2010 relating to undertakings for collective investment.

The Bill will come into effect on 16 April 2026.

What is the purpose of Bill?

The Bill will implement AIFMD 2 provisions without any gold plating to reflect AIFMD 2's purposes to harmonise existing regulatory framework applying to alternative investment funds (AIFs) and alternative investment fund managers (AIFMs) and enhance investors protection across the EU.

What is coming?

The Bill aims to implement the provisions of AIFMD 2 while incorporating Luxembourg specificities:

• Setting new rules for AIFs originating loans with specific guidelines and limits on the use of leverage by such AIFs as well as the need for AIFMs to have robust policies and procedures in place.
• Prohibition for AIFs to grant consumer loans in Luxembourg, this prohibition is the option taken by Luxembourg and other Member States may permit such activity.
• Introduction of a harmonised liquidity management tools framework and a list of the available liquidity management tools.
• Extension of the services AIFMs may perform to include “administration of benchmarks” and “credit servicing activities" for the benefit of third parties.
• Strengthening the rules governing substance and delegation of the AIFMs by aligning the requirements with industry practices across the EU.
• Clarification on distribution of AIFs by independent distributors.
• Possibility to appoint a depositary established in another member state of the European Union.

How Can DLA Piper Assist?

Our team is available to assist with any matters related to AIFMD 2, and answer any questions you may have. Please feel free to reach out to any of the DLA Piper contacts listed below for further information.