ELTIF 2.0 now published in the OJEU
Published 20 March 2023
Category: ELTIFs
Today, 20 March 2023, regulation of 15 March 2023 amending the Regulation for Long-Term Investment Funds (ELTIFs), also known as ELTIF 2.0, have been published in the EU Official Journal. The regulation is available here (in English).
The amendments include a broader scope of eligible assets, a simplified definition of ‘retail assets’, which include lighter retail investor requirements, and an increased market capitalization threshold.
More specifically, the threshold eligible investment asset threshold is lowered from 70 % to 55 %, meaning that ELTIFs have more flexibility when it comes to portfolio composition and diversification. In addition, the borrowing limits of ELTIFs have been raised up to 50 % of the ELTIF’s net asset value instead of the 10 % and 20 %.
Further, applicable for retail investors, the initial investment requirement of EUR 10,000 is removed alongside with removal of the 10 % cap on a portfolio’s exposure to the ELTIF. ELTIFs are not only made more attractive to retail investors, but also professional investors, as ELTIFs solely marketed to professional investors may now leverage 100 % of the fund’s capital instead of the original 30 %.
ELTIF 2.0 also introduces master-feeder structures and a flexible legal framework for fund-of fund structures, providing for fund of fund ELTIFs to now invest in AIFs other than ELTIFs, EuSEFs and EuVECAs.
What’s next: ELTIF 2.0 will enter into force on 10 April 2023. From this date, there will be a 9-month transition period (ending on 10 January 2024), during which only existing ELTIFs will be able to opt into the new regime early by submitting a notification to their national competent authority.
Tags: Retail Investors
Also tagged ‘Retail Investors’
ELTIF 2.0 in force
Today, 10 January 2024, the transition period for the regulation of 15 March 2023 amending the Regulation for Long-Term Investment Funds (ELTIFs), also known as ELTIF 2.0, has ended. Thus, ELTIF 2.0 has now completely entered into force.
ESMARegulatory Technical StandardsRetail InvestorsELTIF 2.0 Adopted
On 15 February 2023, the European Parliament has voted in favour of an update to the EU’s Regulation for Long-Term Investment Funds (ELTIFs), also known as ELTIF 2.0.
Retail InvestorsThe EU Commission Proposes Amendments to the Regulation of European Long-Term Investment Funds
On 25 November 2021, the European Commission published its proposal to amend the Regulation of European Long-Term Investment Funds (ELTIFs) as part of a new Capital Markets Union (CMU) legislative package.
Retail InvestorsEuropean Commission has Launched a Public Consultation on a Retail Investment Strategy
On 11 May 2021, the European Commission launched a public consultation on a retail investment strategy for Europe.
AIFMDMarketingPre-MarketingRetail InvestorsNew Directive to Amend AIFMD has been Adopted
On 14 June 2019 the Council adopted the new directive amending i.a. the Alternative Investment Fund Managers Directive (AIFMD).
AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsVenture CapitalEU Parliament Approves Final Compromise to Amend AIFMD
Highlights include a definition of pre-marketing, rules on de-notification in countries with no investor interests and rules on facilities made available to retail investors.
AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsCross-Border Distribution of Collective Investments Undertakings
On 16 April 2019, the European Parliament adopted the European Commission's initiatives to improve the efficiency of cross-border distribution of Alternative Investment Funds (AIFs) and EuVECA funds by increasing transparency and harmonising diverging national rules.
AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsVenture CapitalOther updates
The Danish FSA has updated the report on fitness assessments
On 5 February 2025, the Danish FSA published a new and updated version of its report detailing its practice regarding the fitness assessment of board members, executive management members and key persons in financial businesses.
Danish RegulationGovernanceThe Danish FSAEU Commission calls for review of certain outbound investments
On 15 January 2025, the European Commission issued a recommendation urging EU Member States to review investments out of EU for risks of enabling technology transfers/leakage into third countries (‘outbound investments’).
Cross-BorderThe Danish government has presented bills for implementing the NIS2 Directive and the CER Directive
On 6 February 2025, the bills for implementing the NIS2 Directive and the CER Directive were presented by the Danish government to the Danish Parliament.
CERCybersecurityNIS2EU Competitiveness Compass – ESG takeaways
29 January 2025, the EU Commission published its Competitiveness Compass which sets out a compass that will guide the work in the coming five years and lists priority actions to reignite economic dynamics in Europe, according to the communication.
CSDDDCSRDDisclosure RequirementsSFDRSustainabilityNew advance tax rulings expand the scope of carried interest taxation
According to two new advance tax rulings from the Danish Tax Assessment Council (SKM2025.46.SR and SKM2025.47.SR), under certain circumstances, investments directly in portfolio companies owned by a private equity or venture capital fund may also be subject to taxation under the carried interest taxation scheme.
Venture CapitalThe Omnibus Simplification Package and how it may impact EU’s ESG regulation
In the end of 2024, the European Commission President Ursula von der Leyen indicated that existing and future EU ESG reporting obligations may be consolidated into an “omnibus” regulation with the purpose of reducing reporting requirements.
CSRDDisclosure RequirementsSustainability