On the 15th February 2023, the European Parliament and the Council of the European Union have adopted, in first reading, the proposal amending Regulation (EU) 2015/760 on European long-term investment funds (the “ELTIF 2.0 Proposal”). The ELTIF 2.0 Proposal aims at amending the scope of eligible assets and investments, the portfolio composition and diversification requirements, the borrowing of cash and other fund rules and as regards requirements pertaining to the authorisation, investment policies and operating conditions of European long-term investment funds.
Once definitively adopted, the ELTIF 2.0 Proposal will enter into force 20 days and 9 months after its publication in the Official Journal of the European Union.
In order to give ELTIF managers sufficient time to adapt to the new requirements, including the requirements pertaining to the marketing of ELTIFs to investors, ELTIFs already authorised in accordance with and complying with the provisions of Regulation (EU) 2015/760 applicable before the date of application of the ELTIF 2.0 Proposal shall be deemed to comply with the ELTIF 2.0 Proposal until 5 years after the date of its application. When an ELTIF does not raise additional capital, it shall be deemed to comply with it also. Nevertheless, an ELTIF authorised before the date of application of the ELTIF 2.0 Proposal may choose to be subject to this new regulation, provided that the competent authority of the ELTIF is notified thereof.
For more information, please contact Isabel Høg-Jensen and Evelyn Maher.