The EU Commission Proposes Amendments to the Regulation of European Long-Term Investment Funds

Published 6 January 2022

PrintCategory: ELTIFs

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. The legislative package includes a review of the AIFMD. You can find more information about the AIFMD review here.

The proposal to amend the Regulation of European Long-Term Investment Funds (ELTIFs) aims to increase uptake of ELTIFs across the EU. Proposed changes include:

  • the existing EUR 10,000 initial investment requirement and the maximum 10% aggregate threshold requirement for retail investors with portfolios below EUR 500,000 are removed;
  • the threshold for investing in real assets is significantly lowered and the requirement that real assets are owned directly or via qualifying portfolio undertakings are removed;
  • restrictive fund rules on portfolio composition and diversification as well as investment concentration are made more flexible; and
  • the possibilities of borrowing cash are improved.

See the proposal for the amendments here.

What’s next: All elements of the legislative package will now be discussed by the European Parliament and the Council.

Tags:  Retail Investors


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