Database on German and European Economic Law

 Regulation (EU) No 2015/760

I. Description

The Council adopted on 20 April 2015 a regulation aimed at increasing the pool of capital available for long-term investment in the EU economy by creating a new form of fund vehicle. European long-term investment funds (ELTIFs), by virtue of the asset classes that they will be allowed to invest in, are expected to provide investors with long-term, stable returns. 
Alternative investments: The creation of clearly defined ELTIFs will help tackle barriers to long-term investment in, for example, infrastructure projects, thereby stimulating employment and economic growth. ELTIFs will only focus on alternative investments that fall within a defined category of long-term asset classes whose successful development requires a long-term commitment from investors. 
This will include: 
•    non-listed undertakings that issue equity;
•    debt instruments for which there is no readily identifiable buyer;
•    real assets that require significant up-front capital expenditure;
•    SMEs admitted to trading on a regulated market or on a multilateral trading facility.
 Eligibility: Only EU alternative investment funds (AIFs) that are managed by alternative investment fund managers (AIFMs), authorised in accordance with directive   2011/61/EU on AIFMs, will be eligible to market themselves as ELTIFs. ELTIFs will be subject to additional rules requiring them, inter alia, to invest at least 70% of their capital in clearly-defined categories of eligible assets. Trading in assets other than long-term investments will only be permitted up to a maximum of 30% of their capital. 
ELTIFs generally do not offer redemption rights before their end of life. This must be clearly indicated as a specific date in the ELTIF rules or instruments of incorporation and disclosed to investors. 
Investor protection: ELTIFs will target both professional and retail investors in the EU. The regulation lays down rules to protect investors, in particular retail investors. The fund manager or distributor must ensure that a retail investor with a portfolio of up to €500 000 doesn't invest an aggregate amount exceeding 10% of his/her portfolio in ELTIFs, provided that the initial amount invested in one or more ELTIFs is not less than €10,000. 
Moreover, where the lifecycle of an ELTIF exceeds ten years, the fund manager or distributor must issue a written alert that it may not be suitable for retail investors unable to sustain such a long-term and illiquid commitment.

(Source: h​t​t​p​:​/​/​w​w​w​.​c​o​n​s​i​l​i​u​m​.​e​u​r​o​p​a​.​e​u​/​e​n​/​p​r​e​s​s​/​p​r​e​s​s​-​r​e​l​e​a​s​e​s​/​2​0​1​5​/​0​4​/​2​0​-​l​o​n​g​-​t​e​r​m​-​i​n​v​e​s​t​m​e​n​t​-​f​u​n​d​s​/)

II. General Information

Title

Regulation of the European Parliament and of the Council of 29 April 2015 on European Long-term Investment Funds

Abbreviations
ELTIF
Status
Existing
Regulation
(EU) No 2015/760
Source
O.J. EU No L (Legislation), Edition 123, Year 2015, p.98
Adoption
04/29/2015
Promulgation
05/19/2015
Character
Regular Act
Legal Basis
Art. 114 Abs. 1 AEUV
Legislative Procedure
Codecision procedure
Background

III. Versions and Legislative History

1. Versions

Titel
Allg. Daten
Textfassung

Original Text ELTIF:
Regulation of the European Parliament and of the Council of 29 April 2015 on European Long-term Investment Funds

  (EU) No 2015/760

Beschluss:
04/29/2015 (A)
Verkuendung:
05/19/2015 (P)
(A) Adoption | (P) Promulgation

2. Legislative History

Datum
Typ / Titel
Textfassungen
10/16/2013
Opinion of the European Economic and Social Committee
ECO/354
06/26/2013
Commission staff working paper
SWD/2013/0231 final (Zusammenfassung)
06/26/2013
Commission staff working paper
SWD(2013) 230 final
06/26/2013
Proposal
COM(2013) 462 final

3. Comments

Datum
Stellungnahme
Textfassungen
12/09/2013
Centrum für Europäsche Politik (cep)
Comment on: Kommissionsvorschlag
11/11/2013
Bundesverband Investment und Asset Management e.V. (BVI)
Comment on: Kommissionsvorschlag

Legend

Legislative Act Status

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Overview

I. Description
II. General Information
III. Versions and Legislative History
1. Versions
2. Legislative History
3. Comments