ESMA Publishes Final Report On Draft RTS For ELTIFs

The European Securities and Markets Authority (ESMA) published on 19 December 2023 its final report on the draft regulatory technical standards (RTS) under the revised European Long-Term Investment Fund (ELTIF) regulation. The RTS cover aspects like the compatibility of the ELTIF's life with the life cycles of individual assets, features of the redemption policy, use of the matching mechanism, and cost disclosure.

The report includes the following proposition from ESMA, while allowing ELTIF managers to deviate from these under specific circumstances if justified to the relevant authority:

• Minimum holding periods

ELTIF managers should have the discretion to set the minimum holding period for each ELTIF, tailored to its specific needs.