Central Bank of Ireland Framework Published on Authorisation of European Long Term Investment Funds (ELTIFs)

Monday, 11 March 2024

Central Bank of Ireland Framework Published on Authorisation of European Long Term Investment Funds (ELTIFs)

Irish Funds welcomes the Central Bank of Ireland's framework published today for authorised European Long Term Investment Funds (ELTIFs) to be established in Ireland.

We greatly appreciate the constructive engagement and extensive programme of work undertaken between Irish Funds, our members and the Central Bank of Ireland to ensure the successful implementation of ELTIF 2.0 in Ireland.

ELTIF is a European regime for alternative investment funds and is critical in facilitating raising capital for long-term investments across the EU (eg infrastructure projects – energy, transport etc.), in line with the European Union (EU) objective of smart, sustainable and inclusive growth.

The feedback statement to consultation paper CP155 has been published on the Central Bank website. In addition, new application forms to assist applicants applying for authorisation have also been published. 

Going Forward - Continued Engagement

Irish Funds will continue to engage on behalf of members with the Central Bank to ensure the successful operationalisation of the new Irish ELTIF regime and will keep members updated on progress made.

Additionally, on March 6th, the European Commission (the Commission) has published their decision to adopt the draft ELTIF Regulatory Technical Standards (RTS) with amendments. According to their letter to the European Securities and Markets Authority (ESMA)

“While the Commission notes that one of the objectives of Regulation (EU) 2023/606 is to provide for flexibility to ELTIF managers to pursue a broad range of investment strategies and objectives, in particular as regards their portfolio composition, the Commission believes that ESMA’s draft RTS does not sufficiently cater for the individual characteristics of different ELTIFs” and “the Commission considers it necessary to take a more proportionate approach to the drafting of the RTS, in particular with regard to the calibration of the requirements relating to redemptions and liquidity management tools.”