Brussels, 20/04/2015 (Agence Europe) - On Monday 20 April, the Council of the EU definitively adopted the rules introducing a structure of investment funds concentrating on long-term investment (ELTIFs).
ELTIFs will be obliged to invest the majority of their capital in clearly defined categories of long-term assets, for instance projects or businesses which struggle to obtain bank loans (see EUROPE 11271). They will have to comply with certain information requirements so that potential investors (pension funds, insurance companies, retail investors) understand the risks to which they are exposed and are aware of the safeguard period during which they will not be able to redeem their investments. Retail investors may, if they so request, be reimbursed at the end of this period, if the ELTIF has sufficient cash assets.
This final step in the legislative procedure comes on the same day as the economic and monetary affairs and budgets committees of the European Parliament adopted their negotiating position on the draft regulation bringing in the European Fund for Strategic Investments (EFSI), which is designed to draw down €315 billion in private investments over three years (see other article). (Mathieu Bion)