New update of the European long-term investment funds (ELTIF) regulation. Concerns about ELTIF regulatory technical standards, what are the answers?

On 10 January 2024, Regulation (EU) 2023/606 of the European Parliament and of the Council of 15 March 2023, amending the original ELTIF Regulation (EU) 2015/760 (the « amended ELTIF Regulation ») entered into force.

Asset management is most affected by this change, the proposed content of the draft regulatory technical standards (RTS) for the ELTIF regulation, published on 19 December 2023 by the European Securities and Markets Authority (ESMA) must now be approved by the European Commission.

Several concerns have been raised, and ESMA proposes to make semi-liquid ELTIFs inapplicable in practice due to the required notice periods and mandatory liquidity allocations. These types of ELTIFs would be unattractive to asset managers and investors due to the requirements set out in the RTS.

In recent weeks, many concerns and questions have been raised.

Stay tuned for further updates concerning this topic.