Fund Distribution Alert 2023-08

The revised ELTIF Regulation, REGULATION (EU) 2023/606 amending Regulation (EU) 2015/760 as regards the requirements pertaining to the investment policies and operating conditions of European long-term investment funds and the scope of eligible investment assets, the portfolio composition and diversification requirements and the borrowing of cash and other fund rules, was published in the Official Journal of the EU on 21 March 2023.

The following changes impacting the distribution of the ELTIFs have been made:

• Insertion of differentiated set of investor protection measures for ELTIFs that are marketed solely to professional investors
• Introduction of specific requirements concerning distribution and marketing of ELTIFs to retail investors
• Adequate disclosure of fees and charges
• Alignment with Directive 2019/1160 by removing the requirement to set up local facilities in each member state where the ELTIF is meant to be marketed to retail investors  
• Removal of minimum investment requirement for potential retail investors

REGULATION (EU) 2023/606 will start to apply on 10 January 2024.

For further information feel free to contact us or refer to the following link.

Partner
+352 22 51 51 7892
said.fihri@kpmg.lu

Director
+352 22 51 51 7271
stephanie.zedda@kpmg.lu