On 19 July 2024, the European Commission adopted a Delegated Regulation supplementing Regulation (EU) 2015/760 with regard to regulatory technical standards specifying when derivatives will be used solely for hedging the risks inherent to other investments of the European long-term investment fund (ELTIF), the requirements for an ELTIF’s redemption policy and liquidity management tools, the circumstances for the matching of transfer requests of units or shares of the ELTIF, certain criteria for the disposal of ELTIF assets, and certain elements of the costs disclosure.

The Commission Delegated Regulation is structured as follows:

  • Article 1 – the circumstances in which the use of financial derivative instruments for hedging purposes is considered as solely serving the purpose of hedging the risks inherent to the investments of the ELTIF.
  • Article 2 – the circumstances in which the life of an ELTIF is to be considered compatible with the life-cycles of each of its individual assets.
  • Article 3 – the criteria to be used by the ELTIF managers to determine the minimum holding period referred to in Article 18(2), first subparagraph, point (a), of Regulation (EU) 2015/760.
  • Article 4 lists the minimum information to be provided by the manager of an ELTIF to the competent authority of the ELTIF under Article 18(2), first subparagraph, point (b), of Regulation (EU) 2015/760.
  • Article 5 – the requirements to be fulfilled by the ELTIF in relation to its redemption policy and liquidity management tools, as referred to in Article 18(2), first subparagraph, points (b) and (c), of Regulation (EU) 2015/760.
  • Article 6 – the criteria to determine the percentage of liquid assets of the ELTIF referred to in Article 18(2), first subparagraph, point (d), of Regulation (EU) 2015/760, which could be used to meet redemption requests.
  • Article 7 – the minimum content requirements to the full or partial matching of transfer requests of units or shares of the ELTIF by exiting and new investors where an ELTIF provides for that possibility under Article 19(2a) of Regulation (EU) 2015/760.
  • Article 8 – the requirements for the determination of the execution price and the pro-ratio conditions where transfers are matched as referred to in Article 19(2a) of Regulation (EU) 2015/760, as well as the level of the fees, costs and charges, if any, related to the transfers of units or shares of the ELTIF.
  • Article 9 – the minimum information that ELTIFs need to disclose to investors when transfers are matched as referred to in Article 19(2a) of Regulation (EU) 2015/760.
  • Article 10 – the criteria for the assessment of the market for potential buyers – for the purposes of Article 21(2), point (a), of Regulation (EU) 2015/760, the manager of an ELTIF shall assess all of the elements for each asset in which the ELTIF invests.
  • Article 11 – the criteria and relevant deadlines for the valuation of the assets to be divested before the deadline referred to in Article 21(1) of Regulation (EU) 2015/760.
  • Article 12 – common definitions, and calculation methodologies and presentation formats of costs of the ELTIF.
  • Annex I – determination of the maximum percentage referred to in Article 18(2), first subparagraph, point (d), of Regulation (EU) 2015/760 as a function of the redemption frequency and the notice period of the ELTIF, including the extension of the notice period, if any.

Annex II – determination of the maximum percentage referred to in Article 18(2), first subparagraph, point (d), of Regulation (EU) 2015/760 as a function of the redemption frequency and the minimum percentage of assets referred to in Article 9(1), point (b) of that Regulation.