Written by Angelos Delivorias (2nd edition, updated on 03.04.2023).
European long-term investment funds (ELTIFs) invest on a long-term basis in infrastructure projects, real estate and SMEs, among others. While the legislative framework – the ELTIF Regulation – for these funds was adopted six years ago, their market remains small. For this reason, the Commission has proposed amending the ELTIF Regulation to make it more appealing to investors. The key mulled changes involve differentiating between ELTIFs marketed to professional investors and those to which retail investors can have access; removing barriers to retail investor access to ELTIFs; and establishing an optional liquidity window mechanism for redemptions, for cases where investors need to exit early.
The interinstitutional negotiations reached agreement on the text in October 2022. That text was then adopted by the Parliament in plenary on 14 February 2023, and thereafter by the Council. The new Regulation applies as of 10 January 2024.
- April 2023: Amending the European Long-Term Investment Funds (ELTIFs) Regulation (2nd edition)
|Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2015/760 as regards the scope of eligible assets and investments, the portfolio composition and diversification requirements, the borrowing of cash and other fund rules and as regards requirements pertaining to the authorisation, investment policies and operating conditions of European long-term investment funds|
|Committee responsible:||Economic and Monetary Affairs (ECON)||COM(2021) 722|
|Rapporteur:||Michiel Hoogeveen (ECR, the Netherlands)||2021/0377(COD)|
|Shadow rapporteurs:||Jessica Polfjärd (EPP, Sweden)|
Elisabetta Gualmini (S&D, Italy)
Ondřej Kovařík (Renew, Czechia)
Claude Gruffat (Greens/EFA, France)
Gunnar Beck (ID, Germany)
|Ordinary legislative procedure|
(COD) (Parliament and Council
on equal footing – formerly ‘co-decision’)
|Procedure completed. Regulation (EU) 2023/606, OJ L 80, 20.3.2023, pp. 1–23|
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