# Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance), Article 19: Due diligence when investing in assets of limited liquidity

Extent: E+W+S+N.I.

1. Where AIFMs invest in assets of limited liquidity and where such investment is preceded by a negotiation phase, they shall, in relation to the negotiation phase, in addition to the requirements laid down in Article 18:
(a) set out and regularly update a business plan consistent with the duration of the AIF and market conditions;
(b) seek and select possible transactions consistent with the business plan referred to in point (a);
(c) assess the selected transactions in consideration of opportunities, if any, and overall related risks, all relevant legal, tax-related, financial or other value affecting factors, human and material resources, and strategies, including exit strategies;
(d) perform due diligence activities related to the transactions prior to arranging execution;
(e) monitor the performance of the AIF with respect to the business plan referred to in point (a).
2. AIFMs shall retain records of the activities carried out pursuant to paragraph 1 for at least five years.

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Source: https://www.legislation.gov.uk/eur/2013/231/article/19 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-231/article-19
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.