The long-awaited ELTIF RTS supplement the revised ELTIF 2.0 regime and will specify in particular the requirements for an ELTIF's redemption policy and liquidity management tools. ELTIFs subject to the revised ELTIF 2.0 regime will have to comply with the ELTIF RTS as of 26 October 2024.
On 25 October 2024, Commission Delegated Regulation (EU) 2024/2759 supplementing the revised ELTIF 2.0 regime (ELTIF RTS) was published in the Official Journal of the EU and will enter into force as of 26 October 2024. The published ELTIF RTS specify, 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.
ELTIFs authorised before 10 January 2024 (the entry into force of the ELTIF 2.0 regime) and opting to remain subject to the former ELTIF regime remain subject to Commission Delegated Regulation (EU) 2018/480.
On 25 October 2024, the CSSF also issued a communiqué on the publication of the ELTIF RTS in the Official Journal of the EU, announcing that it has updated the ELTIF application questionnaire designed to streamline and expedite the application process—to align with the new ELTIF RTS. This updated questionnaire is now a mandatory component to be included in all new applications submitted from the date of this communiqué. The CSSF underscores the need to complete the questionnaire with care and for each ELTIF prospectus to clearly outline liquidity arrangements in line with the ELTIF RTS.
The ELTIF RTS mark a significant milestone that is set to drive growth and innovation across the EU by enhancing investment opportunities and providing greater flexibility for long-term investments.
Click here to access the ELTIF RTS
Click here to read more about the ELTIF RTS
To read more about the ELTIF 2.0 regime:
Click here to read more about the CSSF communiqué
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.
