Members' Research Service By / March 21, 2022

Amending the European Long-Term Investment Funds (ELTIFs) Regulation [EU Legislation in Progress]

European long-term investment funds (ELTIFs) are a sub-category of EU alternative investment funds, whose managers are authorised in accordance with the 2011 Directive on alternative investment fund managers (AIFMD).

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Written by Angelos Delivorias (1st edition).

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 file is currently under review by the co-legislators. Within the European Parliament, it has been assigned to the Committee on Economic and Monetary Affairs. The draft report is expected soon.

Versions

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
25.11.2021
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’)
Next steps expected: Publication of draft report
EU legislation in progress

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