European Parliament Adopts ELTIF Regulation

On March 10, the European Parliament published a press release announcing that it has adopted the proposed Regulation on European Long-Term Investment Funds (ELTIF Regulation). The adopted text has not yet been made publicly available.

ELTIFs are vehicles designed to boost non-bank investment in the real economy across the EU. ELTIF investment funds will have to apply for authorisation, have a regulated structure and comply with uniform rules to ensure that they offer long-term and stable returns. ELTIF investors will have to make a long-term commitment as they will not be able to withdraw their money easily. However, to protect retail investors, the Parliament and the Council of the EU agreed “redemption” rules that would enable an ELTIF that has enough liquid assets to return an investor’s money at the investor’s request.

The ELTIF Regulation now needs to be formally adopted by the Council. The press release states that the ELTIF Regulation should apply six months after its entry into force.  Press Release.