Capital Markets Union: Commission launches public consultation on EU rules for long-term investment funds (ELTIF)

The European Commission has today launched a public consultation on EU rules for long-term investment funds. The European Long-Term Investment Fund (ELTIF) Regulation sets out an EU-wide investment framework designed to attract investors who want to put their money towards long-term investments in companies and projects. These funds aim to boost the finance available to companies looking for long-term capital for different projects in different areas, such as energy, transport, social housing, schools and hospitals. They are an important part of the Capital Markets Union (CMU) and can help support the Recovery Plan for Europe, the European Green Deal and the Digital Single Market. Since the adoption of the ELTIF legal framework in April 2015, only a small number of ELTIFs have been launched with a relatively small amount of net assets under their management (total below EUR 2 billion). There are currently approximately 27 ELTIFs in the EU, while a number of Member States have no domestic ELTIFs. Today’s public consultations aims to gather evidence and stakeholder feedback on how to improve the ELTIF regulatory framework. By reviewing this framework, the Commission aims to enhance the attractiveness of ELTIFs for long-term investment projects, increase the number of ELTIF funds and the overall investment in the real economy. In June 2020, the High Level Forum on the Capital Markets Union (HLF) made a set of specific recommendations calling for a review of the ELTIF Regulation broadening the scope of eligible assets and reducing potential barriers to investment. The Commission is currently assessing the HLF’s recommendations as part of this ELTIF review and the CMU Action Plan. Today’s public consultation will feed into the policy work of the Commission in assessing the ELTIF regulatory framework and preparing policy proposals in this area. It will explore options to tailor and, where appropriate, amend the provisions of the ELTIF Regulation. The consultation is available here.