|Author (Corporate)||European Commission: DG Financial Stability Financial Services and Capital Markets Union|
|Series Details||COM (2021) 722|
|Content Type||Blog & Commentary, Policy-making|
Legislative initiative tabled by the European Commission on 25 November 2021, introducing amendments to 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 (ELTIFs). This is a text with EEA relevance.
European Long-Term Investment Funds (ELTIFs) invest on a long-term basis in infrastructure projects, real estate and SMEs, among others. Regulation (EU) 2015/760 sets out EU-wide rules for the authorisation, investment policies and operating conditions of ELTIFs.
Since the adoption of the original legal framework, only 57 ELTIFs were launched as of October 2021, with a relatively small amount of net assets under management. Such authorised ELTIFs are domiciled in only four Member States and the other Member States had no domestic ELTIFs. While the ELTIF is still a relatively new framework, the available market data indicates that the market’s development did not scaled up as expected, particularly given the Commission’s objective of promoting long-term finance in the European Union.
The proposed review of the rules aims to increase the attractiveness of ELTIFs for investors and their role as a complementary source of financing for EU companies. It also aims to make it easier for retail investors to invest in ELTIFs while ensuring strong investor protection. It was tabled by the European Commission on 25 November 2021 as part of a package of initiatives related to Capital Markets Union (CMU). The Council of the European Union adopted its general approach on 24 May 2022.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Capital Markets Union [CMU], Financial Services|
|International Organisations||European Union [EU]|