International
Asia Pacific
EMEA
North America
Latin America
The regulatory reform of the European long-term investment funds (ELTIFs) enters into force on 10 January 2024, following its approval by the European Parliament and the Council in February 2023.
Regulation (EU) 2023/606 ("Regulation") aims at revitalizing a vehicle that was put in place back in 2015 but which, in the words of the Regulation itself, "did not scale up as expected."
With this in mind, the new regime tackles the shortfalls identified both on the managers' side, as they will now find themselves dealing with a much more flexible product in items such as eligible assets, borrowing, or concentration and diversification rules, as well as on the side of the investors, notably retail investors, whose access to this investment product now becomes simpler.
In Luxembourg, which has positioned itself as the main European hub for ELTIFs (as more than 50% of the total ELTIFs authorized in Europe are domiciled in Luxembourg as of the date of this publication),1 market actors are keeping a close eye on that cornerstone, while it remains to be seen what the practical application of the reform will be.
For further information and to discuss what these new developments mean to you as an ELTIF manager, distributor or investor, please get in touch with your Baker McKenzie specialist.
Click here to read the full alert.
1 Register of authorized European long-term investment funds: https://www.esma.europa.eu/document/register-authorised-european-long-term-investment-funds-eltifs.
Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.
Are you sure want to delete comment ?
Scan this QR Code to share this content
