The eligibility of shares in closed-end AIFs for special funds

The ESMA report dated June 26, 2025, on the revision of the UCITS Eligible Assets Directive could restrict the acquisition of closed-end fund shares by special investment funds (under the Investment Tax Act) in the future. This article examines the interaction between the Eligible Assets Directive and the Investment Tax Act and explains the changes proposed by ESMA for the acquisition of closed-end fund units by UCITS. At the same time, the article explains how the negative effects of the ESMA proposals on the special fund eligibility of closed-end fund units could be avoided.