On 20 November 2025, the LMA co-signed a joint statement setting out concerns from the perspective of investors on the European Commission's proposed reforms regarding the EU securitisation framework. The joint statement sets out the shared views of the LMA and six other trade associations (AFME, AIMA, EFAMA, IACPM, ICMA and MFA).  

While supportive of the underlying intents behind the ongoing review, the associations are concerned that certain measures currently under discussion risk discouraging investment in securitisations, thereby undermining the Commission’s stated objective of growing the market.

We collectively call on co-legislators to make improvements that will enable demand for securitisation in Europe to grow in the context of a robust and resilient regulatory framework.

On 17 October 2025, we responded to the House of Lords Financial Services Regulation Committee’s inquiry on the growth of private markets in the UK.

Our response outlines how private credit has become a vital source of long-term financing for the real economy, complementing and, in some cases, substituting traditional bank lending. It details the increasing interconnections between banks and private credit funds - such as co-investment in leveraged loans, fund finance, and synthetic risk transfer - and discusses the implications for financial stability and access to credit.

We also emphasise the importance of maintaining an internationally competitive and proportionate regulatory regime, ensuring that the benefits of private credit growth are recognised while safeguarding the resilience of the UK’s financial sector. 

On 21 October 2025, ESMA released their final report on the draft regulatory technical standards (RTS) for open-ended loan-originating alternative investment funds (OE LO AIFs). 

The draft RTS determine the requirements with which LO AIFs must comply to maintain an open-ended structure. Those requirements include a sound liquidity management system, the availability of liquid assets and stress testing, as well as an appropriate redemption policy having regard to the liquidity profile of OE LO AIFs.

The LMA responded to ESMA's consultation on the draft RTS in March this year and we are pleased to see that a number of our suggestions have been adopted, including:

• the removal of the requirement for AIFMs to determine a target appropriate amount of liquid assets;

• reduced liquidity stress testing frequency; and

• the exclusion of ESG and innovation related aspects from the RTS.