The EU Commission Proposes Amendments to the Regulation of European Long-Term Investment Funds
Published 6 January 2022
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
Also tagged ‘Retail Investors’
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
Authorized AIFMs shall from 1 August 2022 ensure that their systems, processes, and internal controls reflect relevant sustainability risks as defined in the SFDR.AIFMDComplianceDisclosure RequirementsSustainability
On 31 May 2022, the European Securities and Markets Authority (ESMA) published a supervisory briefing which provides guidance on sustainability risks and disclosures in investment management.Disclosure RequirementsESMASustainability
On 6 April 2022, the Danish Government presented a proposal for an amendment of, among others, the Danish Corporation Tax Act.Danish RegulationManagement Remuneration
The RTS will define the new standard for sustainability-related disclosures in the financial services sector in the EU and supplements provisions of the SFDR and of the Taxonomy Regulation.AIFMDComplianceDisclosure RequirementsSustainability
In November 2021, Invest Europe released its Climate Ambition in which the association committed to contribute to the EU becoming climate-neutral by 2050 and pledged to help the P/E and VC industry move towards net zero.AIFMDComplianceDisclosure RequirementsSustainability
The IPEV Board has started the 2021 review process for the IPEV Valuation Guidelines.Valuation