The EU Commission has adopted a delegated regulation containing the ELTIF regulatory technical standards that will supplement the ELTIF 2.0 regime. The adopted delegated regulation is subject to a 3-month scrutiny period by the EU co-legislators. It may enter into force in Q4 2024 if no objections are raised.
On 19 July 2024, the EU Commission adopted the ELTIF 2.0 regulatory technical standards (ELTIF RTS) specifying, in particular, the requirements for an ELTIF's redemption policy and liquidity management tools, including the proposed methods to determine the minimum percentage of liquid assets that ELTIFs can use to satisfy redemptions, the circumstances for the matching of transfer requests of units or shares of the ELTIF, and certain elements of the costs disclosure.
The adoption of the ELTIF RTS follows long negotiations between
the EU Commission and ESMA. Initially, ESMA published a final
report containing draft RTS in December 2023. Read more
In March 2024, the EU Commission proposed amendments to these draft
RTS. Read more
ESMA subsequently published an opinion on the EU Commission's
proposed amendments.
The ELTIF RTS as now adopted by the EU Commission aim to boost the ELTIF 2.0 regime, taking into account market practice and investor protection.
The EU co-legislators, that is the EU Parliament and the Council of the EU, now have three months to review the adopted ELTIF RTS. Provided the EU co-legislators do not raise any objections or extend the scrutiny period by another three months, we expect publication and entry into force of the ELTIF RTS for Q4 2024.
Click here to access the adopted ELTIF RTS
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.