ELTIF 2.0 now published in the OJEU

Published 20 March 2023

PrintCategory: 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’

10 Jan 2024ELTIFsUpdates

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 Investors
8 Mar 2023ELTIFsUpdates

ELTIF 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 Investors
6 Jan 2022ELTIFsUpdates

The 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 Investors
14 Jun 2021AIFsInvestors RegulationUpdates

European 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 Investors
21 Jun 2019AIFsEuVECA

New 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 Capital
23 May 2019AIFs

EU 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 Investors
16 Apr 2019AIFsArticlesEuVECA

Cross-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 Capital

Other updates

21 May 2024Impact and ESGUpdates

Summary report of the consultations on the implementation of SFDR

The European Commission initiated in September 2023 public and targeted consultations on the implementation of the SFDR running until 22 December 2023. A summary of the contributions on the consultations have now been published in a summary report.

Disclosure RequirementsRegulatory Technical StandardsSustainability
13 May 2024Impact and ESGUpdates

The Danish FSA: Investment Managers must be better at disclosing sustainability related information

The Danish Financial Supervisory Authority has in a thematic review assessed several sustainability related issues at two investment managers.

Disclosure RequirementsSustainability
7 May 2024Impact and ESGUpdates

Invest Europe GP ESG Due Diligence Guide

Invest Europe has published a revised GP ESG Due Diligence Guide. It provides guidance on how ESG factors can be incorporated into general partner’s management and decision-making processes.

7 May 2024Financial RegulationUpdates

The Danish implementation of a framework for supervision of the financial sector under The DORA Regulation and NIS2 Directive

On 2 May 2024, the Danish Parliament adopted an amendment to the Danish Financial Business Act to provide the Danish FSA with a legal framework for supervision of the financial sector under the DORA Regulation and the NIS-2 Directive.

24 Apr 2024Impact and ESGUpdates

Final approval by the EU Parliament of the Corporate Sustainability Due Diligence Directive

Today, 24 April 2024, the Corporate Sustainability Due Diligence Directive (“CSDDD”) received the final green light from the European Parliament.

2 Apr 2024AIFsUpdates

AIFMD 2.0 published in the OJEU

On 26 March 2024, directive 2024/927 amending the directives 2011/61/EU (AIFMD) and 2009/65/EC (UCITSD), also known as AIFMD 2.0, has been published in the EU Official Journal.

AIFMDRisk Management