ELTIF 2.0: Revised RTS Amendments Issued By ESMA

The European Securities and Markets Authority (ESMA) has responded to the European Commission (the Commission) request for amendments to the draft Regulatory Technical Standards (RTS) for the new ELTIF 2.0 regime. Here are some of the key amendments:

1. Redemption notice period: the minimum 12-month notice period for redemptions has been removed. Justification for the consistency of the notice periodto the competent authority if the notice period is less than 6 months (instead of 3 months as suggested by the Commission). In addition, ESMA still links the length of the notice periods with minimum percentages of liquid assets and maximum percentages that can be redeemed.
2. Liquidity requirements: changes have been made to take into account the specificities of different types of ELTIFs without implementing all the Commission suggestions (the redemption frequency criterion has been rejected).