ELTIF 2.0 – Final RTS Published

Background

On 19 July 2024, the European Commission published final regulatory technical standards (the "RTS") in respect of Regulation EU/2023/606 relating to the European long-term investment fund ("ELTIF 2.0"). This follows various back and forth between the European Securities and Markets Authority ("ESMA") and the European Commission (which we wrote about here and here).

The RTS is broadly seen as a positive conclusion from the European Commission, accommodating many of the views expressed by market participants.

Key Provisions

Some of the key provisions set out in the RTS include:

Minimum holding periods

In a departure from the previously published drafts, the final RTS does not impose any strict requirements on the minimum holding period of an ELTIF. ELTIF managers are able to determine the minimum holding period themselves, in accordance with criteria set out in the RTS – for example, the long-term nature and investment strategy of the ELTIF,