On 19 December 2023, the European Securities and Markets
Authority (ESMA) unveiled its final draft
regulatory technical standards (RTS) on Regulation
(EU) 2023/606 (the ELTIF 2 Regulation), covering
critical aspects such as minimum holding periods, notice periods,
thresholds for liquid assets, and maximum redemption limits. This
final RTS has not yet been formally adopted, and the European
Commission may amend or reject the proposed standards.
The draft RTS cover a number of topics, including hedging
restrictions, the life cycle of investments of the European
long-term investment fund (ELTIF), matching
mechanism conditions and disclosures on costs. We have highlighted
below a few of the items that we consider key takeaways for the
market.
