On 23 March 2018, the EU Commission supplemented the European Long Term Investment Fund ("ELTIF") Regulation (Regulation (EU) 2015/760) by adopting a new Delegated Regulation (EU) 2018/480 which specifies a number of points that are applicable to ELTIFs:
- the circumstances in which the use of financial derivative instruments can be considered as solely serving the purpose of hedging the risks inherent in other investments of an ELTIF;
- the concept of sufficient length of life of an ELTIF;
- the criteria for the assessment of the market for potential buyers;
- the criteria for the valuation of the assets to be divested; and
- the specifications on the facilities available to retail investors.
The Delegated Regulation became applicable on 12 April 2018. Transitional provisions are provided which allow existing ELTIFs authorised under the ELTIF Regulation before 12 April 2018 to comply with the Delegation Regulation from 1 May 2019 only.
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.