European Long-Term Investment Funds Regulation (the ELTIF Regulation)
European Long-Term Investment Funds Regulation (the ELTIF Regulation)

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • European Long-Term Investment Funds Regulation (the ELTIF Regulation)
  • Legislative background to ELTIF
  • What is an ELTIF?
  • Why did the Commission propose ELTIFs?
  • What does the ELTIF Regulation do?
  • ELTIF Regulation’s relationship with AIFMD, UCITS and the Prospectus Regulation
  • Application for authorisation as an ELTIF
  • Investment policies and restrictions
  • Prohibited activities
  • Diversification requirements
  • more

BREXIT: The UK is leaving EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance on the impact of Brexit on AIFMs and ELTIFs, see Practice Note: Impact of Brexit: AIFMD—quick guide.

Legislative background to ELTIF

In June 2013, the European Commission (the Commission) proposed the creation of a new investment fund vehicle, namely the European Long-Term Investment Fund (ELTIF), designed to make longer term investment easier both for managers and investors.

The ELTIF Regulation (Regulation (EU) 2015/760) was adopted by the Council of the European Union on 29 April 2015, published in the Official Journal (OJ) of the EU on 10 May 2015, entered into force on 8 June 2015 and became applicable in Member States from 9 December 2015.

On 23 March 2018, Commission Delegated Regulation (EU) 2018/480 (the ELTIF Delegated Regulation), supplementing the ELTIF Regulation with regard to regulatory technical standards (RTS) on financial derivative instruments solely serving hedging purposes, sufficient length of the life of the ELTIFs, assessment criteria for the market for potential buyers and valuation of the assets to be divested, and the types and characteristics of the facilities available to retail investors was published in the OJ.

What is an ELTIF?

The ELTIF Regulation allows investors to