On 23 May 2023, the European Securities and Markets Authority (ESMA) published a Consultation Paper on draft regulatory technical standards (RTS) under the revised European long-term investment fund (ELTIF) Regulation.

The draft RTS specify the way the new requirements of the revised ELTIF Regulation, in particular on the redemption policy and matching mechanisms, will apply.

The Consultation Paper seeks stakeholder’s views on:

  • The circumstances in which the life of an ELTIF is considered compatible with the life-cycles of each of the individual assets, as well as different features of the redemption policy of the ELTIF.
  • The circumstances for the use of the matching mechanism, i.e. the possibility of full or partial matching (before the end of the life of the ELTIF) of transfer requests of units or shares of the ELTIF by exiting ELTIF investors with transfer requests by potential investors.
  • The costs disclosure.

The deadline for responding to the Consultation Paper is 24 August 2023. ESMA will consider the feedback and expects to publish a final report and submit the draft technical standards to the European Commission for endorsement by 10 January 2024.