36 Amendments of Jessica POLFJÄRD related to 2021/0377(COD)
Amendment 84 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8 a) To increase the attractiveness of ELTIFs, open-ended fund structures alongside the existing closed-end structure should be introduced. Combining the introduction of open- ended structures with clear rules for redemption rights would increase flexibility for investors and enable increased participation.
Amendment 88 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) Regulation (EU) 2015/760 currently prevents investments by ELTIFs in credit institutions, investment firms, insurance undertakings and other financial undertakings. Such financial undertakings may play an important role in promoting digital innovation and an overall efficiency of Union financial markets, job creation and contributing to the resilience and stability of Union financial infrastructure and the Capital Markets Union at large. It is therefore necessary to remove that limitation and permit ELTIFs to invest in any financial undertakings where such undertakings are dedicated to promoting the objectives of Regulation (EU) 2015/760.
Amendment 95 #
Proposal for a regulation
Recital 10
Recital 10
(10) It is necessary to extend the scope of eligible assets and promote the investments of ELTIFs in securitised assets. It should therefore be clarified that, where the underlying assets consist of long-term exposures, eligible investment assets should also include simple, transparent and standardised (STS) securitisations as referred to in Article 18 of Regulation (EU) 2017/2402 of the European Parliament and of the Council14 ecuritisations. Those long-term exposures comprise securitisations of residential loans that are secured by one or more mortgages on residential immovable property (residential mortgage backed securities (RMBS)), commercial loans that are secured by one or more mortgages on commercial immovable property, corporate loans, including loans which are granted to small and medium enterprises (SMEs), and trade receivables or other underlying exposures that the originator considers to form a distinct asset type, provided that the proceeds from securitising those trade receivables or other underlying exposures are used for financing or refinancing long- term investments. _________________ 14 Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012 (OJ L 347, 28.12.2017, p. 35).
Amendment 98 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to improve access of investors to more up-to-date and complete information on the ELTIF market, it is necessary to increase the granularity and the timeliness of the central public register referred to in Article 3(3), second subparagraph, of Regulation (EU) 2015/760 (‘ELTIF register’). The ELTIF register should therefore contain additional information to the information that that register contains already, including, where available, the Legal Entity Identifier (‘LEI’) and the national code identifier of the ELTIF, the name, address and the LEI of the ELTIF manager, the International Securities Identification Numbers (‘ISIN’) codes of the ELTIF and of each separate share or unit class, the competent authority of the ELTIF and the home Member State of that ELTIF, the Member States where the ELTIF is marketed, whether the ELTIF can be marketed to retail investors or can solely be marketed to professional investors, the date of the authorisation of the ELTIF, and the date on which the marketing of the ELTIF has commenced. In addition, to enable ELTIF investors to analyse and compare existing ELTIFs, the ELTIF register should contain up-to- date links to the ELTIF documentation, including to the rules or instruments of incorporation of the ELTIF concerned, the annual reports, the prospectus and, where available, the Key Information Document drawn up in accordance with Regulation (EU) No 1286/2014 of the European Parliament and of the Council15 . To ensure an up-to-date status of the ELTIF register, it is appropriate to require competent authorities to communicate to ESMA any changes to the information on an ELTIF, including authorisations and withdrawals of such authorisations, on a monthly basis. _________________ 15 Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) (OJ L 352, 9.12.2014, p. 1)To ensure an up-to-date status of the ELTIF register, it is appropriate to require competent authorities to communicate to ESMA any changes to the information on an ELTIF, including authorisations and withdrawals of such authorisations, on a quarterly basis.
Amendment 100 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) The reference value used for determining limits on diversification and borrowing should be relevant and provide an up-to-date and accurate image of an ELTIF. Therefore, net asset value should be used as the reference value for determining limits for an ELTIF, instead of the value of its capital.
Amendment 103 #
Proposal for a regulation
Recital 13
Recital 13
(13) Due to concerns that fund-of-funds strategies can give rise to investments that would not fall within the scope of eligible investment assets, Regulation (EU) 2015/760 currently contains restrictions on investments in other funds throughout the ELTIF’s life. Fund-of-fund strategies are, however, a common and very effective way of obtaining rapid exposure to illiquid assets, in particular in respect of real estate and in the context of fully paid-in capital structures. It is therefore necessary to give ELTIFs the possibility to invest in other funds, because that would enable ELTIFs to ensure a faster deployment of capital. Facilitating fund-of-fund investments by ELTIFs would also allow reinvestment of excess cash into funds as different investments with distinct maturities may lower the cash drag of the ELTIF. It is therefore necessary to expand the eligibility of funds-of-funds strategies for ELTIF managers beyond investments in European venture capital funds (EuVECAs) or European social entrepreneurship funds (EuSEFs). The scope of collective investment undertakings in which ELTIFs can invest should thus be broadened to undertakings for collective investment in transferable securities (UCITS) and to EU alternative investment funds (EU AIFs) managed by EU AIF managers. However, in order to ensure effective investor protection, it is also necessary to set out that where an ELTIF invests in other ELTIFs, in European venture capital funds (EuVECAs), in European social entrepreneurship funds (EuSEFs), in UCITS and EU AIFs managed by EU AIFMs, those collective investment undertakings should also invest in eligible investments and have not themselves invested more than 120 % of their capitalnet asset value in any other collective investment undertaking.
Amendment 116 #
Proposal for a regulation
Recital 18 a (new)
Recital 18 a (new)
(18 a) Given the importance of level playing field among financial products when such products are marketed to end- investors and the effective investor protection safeguards provided for, among others, in this amending Regulation, ELTIFs should not be subject to unnecessary administrative and regulatory burden.
Amendment 120 #
Proposal for a regulation
Recital 20
Recital 20
(20) Article 10, point (e), of Regulation (EU) 2015/760 currently requires that eligible investment assets, where those assets are individual real assets, have a value of at least EUR 10 000 000. Real assets portfolios, however, are often composed of a number of individual real assets which have a value of less than EUR 10 000 000. The value of individual real asset should therefore be reduced to EUR 1 000 000. That amount is basthreshold should therefore be removed oin the estimated value of individual real assets which may typically form large real assetsorder to facilitate the diversification of an investment portfolios, and may thus contribute to the diversification of an investment portfolioto take into consideration the different conditions in Member States.
Amendment 123 #
Proposal for a regulation
Recital 21
Recital 21
(21) Article 11(1), point (b)(ii) of Regulation (EU) 2015/760 currently requires that qualifying portfolio undertakings, where those qualifying undertakings are admitted to trading on a regulated market or on a multilateral trading facility, have a market capitalisation of no more than EUR 500 000 000. Many listed companies with a low market capitalisation, however, have a limited liquidity which prevents ELTIF managers from building, within a reasonable time, a sufficient position in such listed companies, which narrows down the range of available investment targets. In order to provide ELTIFs with a better liquidity profile, the market capitalisation of the listed qualifying undertakings in which ELTIFs can invest should therefore be increased from maximum EUR 500 000 000 to maximum EUR 13 000 000 000. To avoid potential changes to the eligibility of such investments due to currency fluctuations or other factors, the determination of the market capitalisation threshold should only be made at the time of the initial investment.
Amendment 128 #
Proposal for a regulation
Recital 25
Recital 25
(25) Leverage is frequently used to enable the day-to-day operation of an ELTIF and to carry out a specific investment strategy. Moderate amounts of leverage can amplify returns, and, where controlled adequately, without incurring or exacerbating excessive risks. In addition, leverage can frequently be used by a variety of collective investment undertakings to gain additional efficiencies or operational results. Since the borrowing of cash threshold is currently limited to 30% of the capital of the ELTIF, ELTIF managers may be unable to successfully pursue certain investment strategies, including in the case of investments in real assets, where using higher levels of leverage is an industry norm or is otherwise required to achieve attractive risk-adjusted returns. It is therefore appropriate to increase the flexibility of managers of ELTIFs to raise further capital during the life of the ELTIF. In view of the possible risks that leverage can entail, ELTIFs marketed to retail investors should be permitted to borrow cash amounting to up to 750 % of the value of the capitalnet asset value of the ELTIF. The 750 % threshold is appropriate given the overall borrowing of cash limits common for funds investing in real assets with a similar liquidity and redemption profile. As for ELTIFs marketed to professional investors, however, a higher leverage threshold should be permitted, because professional investors have a higher risk-tolerance than retail investors. The borrowing of cash threshold for ELTIFs that are marketed to professional investors only should therefore be extended to 100 % of the ELTIF capitalnet asset value.
Amendment 137 #
Proposal for a regulation
Recital 27
Recital 27
(27) ELTIFs should be able to encumber their assets to implement their borrowing strategy. To address concerns about shadow banking activities, however, cash borrowed by ELTIFs should not be used to grant loans to qualifying portfolio undertakings. However, to increase the flexibility of ELTIFs in executing their borrowing strategy, the borrowing arrangements should not count as borrowing where that borrowing is fully covered by investors’ capital commitments.
Amendment 148 #
Proposal for a regulation
Recital 40
Recital 40
(40) In order to give ELTIF managers sufficient time to adapt to the new requirements, including the requirements pertaining to the marketing of ELTIFs to investors, this Regulation should start to apply six months after its entry into force,. As ELTIFs are long-term by nature, existing ELTIFs should be allowed to benefit from a grandfathering clause in order to safeguard predictability and trust.
Amendment 155 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a a (new)
Article 1 – paragraph 1 – point 2 – point a a (new)
Regulation (EU) 2015/760
Article 2 – point 7
Article 2 – point 7
(a a) point (7) is deleted.
Amendment 158 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Regulation (EU) 2015/760
Article 2 – point 14a
Article 2 – point 14a
(14a) ‘simple, transparent and standardised securitisation’ means a securitisation that complies with the conditions set out in Article 18as defined in Article 2, point (1), of Regulation (EU) 2017/2402 of the European Parliament and of the Council*1’;
Amendment 162 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) 2015/760
Article 3 – paragraph 3 – subparagraph 1
Article 3 – paragraph 3 – subparagraph 1
3. The competent authorities of the ELTIFs shall, on a monthquarterly basis, inform ESMA of authorisations granted or withdrawn pursuant to this Regulation and of any changes to the information about an ELTIF that is set out in the central public register referred to in the second subparagraph.
Amendment 165 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) 2015/760
Article 3 – paragraph 3 – subparagraph 2 – point k
Article 3 – paragraph 3 – subparagraph 2 – point k
Amendment 175 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Regulation (EU) 2015/760
Article 10 – paragraph 1 – point d
Article 10 – paragraph 1 – point d
(d) units or shares of one or several other ELTIFs, EuVECAs, EuSEFs, UCITS and EU AIFs managed by EU AIFM provided that those ELTIFs, EuVECAs, EuSEFs¸ UCITS and EU AIFs invest in eligible investments as referred to in Article 9(1) and (2) and have not themselves invested more than 120% of their net assets value in any other collective investment undertaking.
Amendment 180 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Regulation (EU) 2015/760
Article 10 – paragraph 1 – point e
Article 10 – paragraph 1 – point e
(e) real assets with a value of at least EUR 1 000 000 or its equivalent in the currency in which, and at the time when, the expenditure is incurred;
Amendment 182 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Regulation (EU) 2015/760
Article 10 – paragraph 1 – point f – introductory part
Article 10 – paragraph 1 – point f – introductory part
(f) simple, transparent and standardised securitisations where the underlying exposures correspond to one of the following categories:ecuritisations;
Amendment 185 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Regulation (EU) 2015/760
Article 10 – paragraph 1 – point f – point i
Article 10 – paragraph 1 – point f – point i
Amendment 187 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Regulation (EU) 2015/760
Article 10 – paragraph 1 – point f – point ii
Article 10 – paragraph 1 – point f – point ii
Amendment 192 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point a a (new)
Article 1 – paragraph 1 – point 6 – point a a (new)
Regulation (EU) 2015/760
Article 11 – paragraph 1 – point a
Article 11 – paragraph 1 – point a
(a a) point a is deleted;
Amendment 194 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point b
Article 1 – paragraph 1 – point 6 – point b
(ii) is admitted to trading on a regulated market or on a multilateral trading facility and has a market capitalisation of no more than EUR 13 000 000 000 at the time of the initial investment;;
Amendment 198 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 a (new)
Article 1 – paragraph 1 – point 6 a (new)
Regulation (EU) 2015/760
Article 11 – paragraph 2
Article 11 – paragraph 2
(6 a) In Article 11, paragraph 2 is deleted.
Amendment 203 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
Regulation (EU) 2015/760
Article 13 – paragraph 1
Article 13 – paragraph 1
1. An ELTIF shall invest at least 650 % of its capitalnet asset value in eligible investment assets.
Amendment 207 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
Regulation (EU) 2015/760
Article 13 – paragraph 2 – point a
Article 13 – paragraph 2 – point a
(a) 20 % of its capitalnet asset value in instruments issued by, or loans granted to, any single qualifying portfolio undertaking;
Amendment 211 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
Regulation (EU) 2015/760
Article 13 – paragraph 2 – point b
Article 13 – paragraph 2 – point b
(b) 20 % of its capitalnet asset value directly or indirectly in a single real asset;
Amendment 214 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
Regulation (EU) 2015/760
Article 13 – paragraph 2 – point c
Article 13 – paragraph 2 – point c
(c) 20 % of its capitalnet asset value in units or shares of any single ELTIF, EuVECA, EuSEF, UCITS or EU AIF managed by an EU AIFM;
Amendment 217 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
Regulation (EU) 2015/760
Article 13 – paragraph 2 – point d
Article 13 – paragraph 2 – point d
(d) 10 % of its capitalnet asset value in assets as referred to in Article 9(1), point (b), where those assets have been issued by any single body.
Amendment 224 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
Regulation (EU) 2015/760
Article 13 – paragraph 3
Article 13 – paragraph 3
3. The aggregate value of units or shares of ELTIFs, EuvECAs, EuSEFs, UCITS and of EU AIFs managed by EU AIFM in an ELTIF portfolio shall not exceed 40 % of the value of the capital of the ELTIF.;deleted
Amendment 229 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point b
Article 1 – paragraph 1 – point 8 – point b
Regulation (EU) 2015/760
Article 13 – paragraph 3a
Article 13 – paragraph 3a
3a. The aggregate value of simple, transparent and standardised securitisations in an ELTIF portfolio shall not exceed 20% of the value of the capitalnet asset value of the ELTIF.;
Amendment 232 #
Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point c
Article 1 – paragraph 1 – point 8 – point c
Regulation (EU) 2015/760
Article 13 – paragraph 4
Article 13 – paragraph 4
4. The aggregate risk exposure to a counterparty of the ELTIF stemming from OTC derivative transactions, repurchase agreements, or reverse repurchase agreements shall not exceed 10 % of the value of the capitalnet asset value of the ELTIF.;
Amendment 246 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – point i
Article 1 – paragraph 1 – point 10 – point a – point i
Regulation (EU) 2015/760
Article 16 – paragraph 1 – point b
Article 16 – paragraph 1 – point b
(a) it represents no more than 750 % of the value of the capitalnet asset value of the ELTIF, and no more than 100 % of the value of the capitalnet asset value of the ELTIF for ELTIFs marketed solely to professional investors;
Amendment 249 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – point i
Article 1 – paragraph 1 – point 10 – point a – point i
Regulation (EU) 2015/760
Article 16 – paragraph 1 – point b
Article 16 – paragraph 1 – point b
(b) it serves the purpose of making investments or providing liquidity, including to pay costs and expenses, except for loans as referred to in Article 10, point (c), provided that the holdings in cash or cash equivalents of the ELTIF are not sufficient to make the investment concerned;
Amendment 257 #
(12 a) the following Article 18a is inserted: ‘Article 18a Subscription and redemption of shares and units in open-ended ELTIFs 1.By way of derogation from Article 18, ELTIF may be open-ended. 2.The fund rules of an open-ended ELTIF shall provide for the subscription and redemption of units or shares on specific dates and at least every 12 months. 3.. Where the fund rules of an open-ended ELTIF provide for the subscription and redemption of units or shares, a manager of such an open-ended ELTIF shall not be exempted from its obligations to respect the diversification requirements, eligible assets investment limits and borrowing of cash requirements in accordance with the provisions of this Regulation. 4.Units or shares of an open-ended ELTIF may only be redeemed after a minimum holding period of 24 months. 5. The manager of an ELTIF shall be notified of the investor’s request for redemption by means of an irrevocable redemption declaration.’;
Amendment 281 #
Proposal for a regulation
Article 2 – paragraph 2
Article 2 – paragraph 2
Regulation (EU) 2015/760
Article 38 – paragraph 1 – subparagraph 2
Article 38 – paragraph 1 – subparagraph 2
It shall apply from [entry into force + 6 months]. ELTIFs established before … [the date of entry into force of this Regulation] shall have the right to opt out from the application of the requirements set out in this amending Regulation.