24 February 2016
The EU Regulation on long-term investment funds (ELTIF) came into force on 9 December 2015. On the same day the Irish Government published the EU (European long-term investment funds) Regulations (the Regulations), designating the Central Bank of Ireland (CBI) as the competent authority for the purposes of the ELTIF Regulation. Pursuant to these Regulations, the CBI may impose certain conditions in respect of authorisation and conduct of business of the ELTIF. Application forms to be used in the authorisation of an ELTIF have been published on the CBI website and the CBI has confirmed that it is ready to accept applications for establishment of an ELTIF. Only an EU alternative investment fund (AIF) is eligible to become an authorised ELTIF and only then if it is managed by an EU alternative investment fund manager (AIFM). Irish Funds, the representative body of the Irish funds industry, continues to engage with the Central Bank on legal and technical matters relating to the establishment of ELTIFs.
ELTIFs are designed to boost long-term non-bank investment in the real economy across Europe. ELTIFs may be invested in a broad range of asset classes, including infrastructure projects, real estate and listed and unlisted SMEs, which may require longer-term capital. They will enable pension funds, insurance companies, professional and, subject to a minimum investment requirement, retail investors to invest in these asset classes, provided that such investment benefits the EU economy.