The European Parliament published its Texts Adopted which includes the provisional versions of the texts on 10 March 2015 of the Regulation on European Long-Term Investment Funds (ELTIF Regulation). The ELTIF Regulation now needs to be formally adopted by the Council of the EU. It will enter into force 20 days after it is published in the Official Journal of the EU (OJ) and is expected to apply six months after it has entered into force. ELTIFs are vehicles designed to boost non-bank investment in the real economy across the EU. ELTIFs will facilitate investors to invest into companies and projects that need long-term capital. Long-term capital and finances tangible assets (such as energy, transport, communication infrastructures, industrial and service facilities, housing and climate change technologies), as well as intangible assets (such as education and research and development). The ELTIF Regulation lays down uniform rules on the authorisation, investment policies, and operating conditions of EU AIFs that are marketed as ELTIFs.
ELTIFs will have to apply for authorisation, have a regulated structure and comply with uniform rules to ensure that they offer long-term and stable returns. The ELTIF Regulation provides that ELTIFs are not to be invested in speculative assets, and that any retail investors putting money into them are properly informed and protected. ELTIF investors will have to make a long-term commitment as they will not be able to withdraw their money easily. However, to protect retail investors, the Parliament and the Council of the EU agreed "redemption" rules that would enable an ELTIF that has enough liquid assets to return an investor's money at the investor's request.