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Publication of the final version of the Commission Delegated Regulation on ELTIF

18/01/2018

On 6 December 2017, the European Commission published the final version of the Commission Delegated Regulation on European Long-Term Investment Funds (ELTIFs).

On 6 December 2017, the European Commission published the final version of the Commission Delegated Regulation on European Long-Term Investment Funds (ELTIFs). This Commission Delegated Regulation focuses on:

(i) derivatives: they must be put in place only for purposes of coverage of eligible assets, but without hedging instruments on assets held in the portfolio. Underlying contracts may be put in place for assets of the same class;
(ii) lifespan of an ELTIF: lifespan fixed at creation in relation to the longer asset duration. Subsequent investments must be made in assets whose duration is shorter than the duration of the ELTIF;
(iii) evaluation criteria for assets held by the Fund: dependence on external financing, asset maturity profile, the impact of the legislative changes and/or potential political hazards;
(iv) the conditions for transfer of assets: the transfer must occur sufficiently before communication of asset transfer, but not more than 6 months before;
(v) investor relations: establishment of the infrastructure required to manage subscriptions/repurchases by investors in all countries where the fund is traded, either by the management company broker or by a regulated third party.

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