The European Commission has adopted a Delegated Regulation supplementing the Regulation on European long-term investment funds (ELTIF Regulation).
The Delegated Regulation contains regulatory technical standards specifying:
- the criteria for establishing the circumstances in which the use of financial derivative instruments solely serves hedging purposes under Article 9(3) of the ELTIF Regulation;
- the circumstances in which the life of an ELTIF is considered sufficient in length to cover the life-cycle of each of the individual assets of the ELTIF under Article 18(7) of the ELTIF Regulation;
- the criteria for an assessment of the market for potential buyers and a valuation of the assets to be divested under Article 21(3) of the ELTIF Regulation;
- common definitions, calculation methodologies and presentation formats of the costs and overall ratio of the costs to the capital of the ELTIF under Article 25(3) of the ELTIF Regulation; and
- the types and characteristics of the facilities available to retail investors under Article 26(2) of the ELTIF Regulation.
The Council of the EU and the European Parliament will now consider the Delegated Regulation. If neither objects, the Delegated Regulation enters into force on the twentieth day following that of its publication in the Official Journal of the European Union. The Delegated Regulation is directly applicable in all Member States.