On 26 March 2024, the European Commission (the Commission) published a Communication on the intention to adopt, with amendments, a Commission Delegated Regulation supplementing Commission Delegated Regulation (EU) 2015/760. The regulatory technical standards (RTS) in the proposed Commission Delegated Regulation specifies obligations of European long-term investment funds (ELTIFs) and their managers concerning the hedging of derivatives, redemption policy and liquidity management tools, trading and issue of units or shares of ELTIFs, and transparency requirements.

The European Securities and Markets Authority (ESMA) submitted the draft Delegated Regulation to the Commission on 19 December 2023. In the Communication it is proposed that the Commission communicate to ESMA that it intends to adopt the draft Delegated Regulation solely once amendments are made by ESMA. The main reasons for the amendments are summarised in a draft letter to ESMA’s chair which is set out in an Annex to the Communication.  

The Communication invites the Commission to approve the letter to ESMA’s chair and authorise the Director General of the Directorate General for Financial Stability, Financial Services and Capital Markets Union to sign and send it.

As per Article 10(1), sub-paragraph 5 of Regulation (EU) No 1095/2010,  where the Commission intends to adopt draft RTS in part or with amendments, it shall send the draft RTS back to ESMA, explaining the reasons for its amendments. Subsequently, for a period of six weeks, ESMA may amend the draft RTS on the basis of the Commission’s proposed amendments and resubmit it in the form of a formal opinion to the Commission. As per Article 10(1), sub-paragraph 6 of Regulation (EU) No 1095/2010, if, on the expiry of the six-week period, ESMA has not submitted amended draft RTS, or has submitted draft RTS that is not amended in a way consistent with the Commission’s proposed amendments, the Commission may adopt the RTS with the amendments it considers relevant or reject it.