In early 2024, the E.U. adopted final amendments (Amendments) to the Alternative Investment Fund Managers Directive and the Undertakings for the Collective Investment in Transferable Securities (UCITS) Directive. One of the purposes of the Amendments is to facilitate fund managers’ use of liquidity management tools (LMTs) across the E.U. The Amendments require managers of open-end alternative investment funds and UCITS funds to use at least two LMTs from a list of available tools. On March 12, 2026, the European Securities and Markets Authority issued guidance (Guidance) on the selection and implementation of LMTs by such managers. E.U. Member States’ competent authorities must incorporate the Guidelines into their regulatory and supervisory regimes. This article parses the underlying rules and the Guidance. See “ESG Triggers, Liquidity Management and Other Ways the Russia/Ukraine War Is Affecting Hedge Fund Investments (Part Two of Two)” (Jul. 28, 2022).