The Commission has published a proposal for a Regulation on European Long-term Investment Funds (ELTIFs), a new investment fund framework available to all types of investors. The proposed Regulation lays down requirements on the type of investments that ELTIFs would be allowed to make (long-term, illiquid and not traded on regulated markets), restrictions on redemptions, portfolio diversification, use of derivatives and leverage, and transparency and marketing. ELTIF managers would have to comply with the Alternative Investment Managers Directive (AIFMD). The Commission seeks to introduce a "second retail passport", based on the UCITS model of risk spreading and product specifications, to overcome regulatory fragmentation and the lack in many Member States of funds models addressing investment in long-term asset classes. (Source: Proposal for a ELTIF Regulation)