ELTIF 2.0: the European Commission has proposed amendments to the ESMA RTS Project
On 6 March 2024, the European Commission (EC) sent a letter to the European Securities and Markets Authority (ESMA) notifying its acceptance of the draft RTS project with some amendments. The EC considered that ESMA had failed to take a proportionate approach in its formulation of the draft RTS project issued on 19 December 2023 “with regard to the calibration of the requirements relating to redemptions and liquidity management tools”.
EC made amendments mainly on ex-post notification of material changes to the redemption policy, minimum notice periods for redemptions, liquidity requirements, liquidity management tools, redemption gates, common definitions, calculation methodologies and cost presentation formats.
The RTS published by ESMA must be adopted by the European Commission to be effective.