BETA

Activities of Claude GRUFFAT related to 2021/0377(COD)

Plenary speeches (1)

2023/02/14
Dossiers: 2021/0377(COD)

Shadow reports (1)

REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2015/760 as regards the scope of eligible assets and investments, the portfolio composition and diversification requirements, the borrowing of cash and other fund rules and as regards requirements pertaining to the authorisation, investment policies and operating conditions of European long-term investment funds

2022/06/29
Committee: ECON
Dossiers: 2021/0377(COD)
Documents: PDF(293 KB) DOC(98 KB)
Authors: [{'name': 'Michiel HOOGEVEEN', 'mepid': 218349}]

Amendments (61)

Proposal for a regulation
Recital 5

(5) The rules for ELTIFs are almost identical for both professional and retail investors, including rules on the use of leverage, on the diversification of assets and composition of the portfolios, on concentration limits and on limits on the eligible assets and investments. Both types of investors, however, have different time horizons, risk tolerances and investment needs. Because of those almost identical rules ~~and the consequential high administrative burden and associated costs for ELTIFs destined for professional investors~~, asset managers have been reluctant to offer tailored products to ~~such~~professional investors. Professional investors have a higher risk tolerance than retail investors and may have, due to their nature and activities, different time horizon and return objectives. It is therefore appropriate to provide for specific rules for ELTIFs that are ~~destined to be~~ marketed to professional investors, in particular with regard to the ~~diversification and composition of the portfolio concerned, the minimum threshold for eligible assets, the concentration limits,~~fund structure and the borrowing of cash.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 6

(6) It is necessary to enhance the flexibility of asset managers in investing in a broad categories of real assets. Direct or indirect holdings of real assets should therefore be deemed to form a category of eligible assets, provided that those real assets have value due to their nature or substance. Such real assets comprise immovable property, communication, environment, energy or transport infrastructure, social infrastructure, including retirement homes or hospitals, as well as infrastructure for education, health and welfare support or industrial facilities, installations, and other assets, including intellectual property, vessels, equipment, machinery, ~~aircraft or rolling stock,~~ and immovable property.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 9

(9) It is necessary to increase the attractiveness of ELTIFs for asset managers and broaden the range of investment strategies available to ELTIF managers and thus to avoid the undue limitation of the scope of the eligibility of assets and investment activities of ELTIFs. The eligibility of real assets should ~~not depend on their nature and objective or upon environmental, sustainability or social and governanc~~take into account the investments needed to finance the Green transition and therefore, eligible assets should include assets that comply with the sustainability criteria defined in the rdelegated ~~disclosures and conditions, which are already covered by~~acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) Regulation (EU) 20~~19/2088~~20/852 of the European Parliament and of the Council12 ~~and by Regulation (EU) 2020/852 of the European Parliament and of the Council13~~ . Additionally, ELTIFs should not invest in assets the underlying economic activities of which do significantly harm any of the environmental objectives set out in Article 9 of Regulation (EU) 2020/852 in accordance with Article 17 and the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of that Regulation. _________________ 12 Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1). 13 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 9 a (new)

(9 a) The Commission estimates that additional investments of EUR 260 billion will be needed in the Union to reach the 2030 energy and climate target. At the same time, investors, and in particular retail investors, are showing a growing interest in sustainable investment. The long-term horizon of ELTIFs makes them a suitable instrument to match investors’ demand for sustainable products with the need to increase capital flows towards green investments. Therefore, a new “environmentally-sustainable ELTIF” category should be created to collect capital from investors looking for sustainable investment. This environmentally-sustainable ELTIF should be subject to stricter requirements with regard to the list of eligible assets. Such an ELTIF should invest exclusively in assets that comply with the requirements laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 9 b (new)

(9 b) Green washing practices should be avoided and investors should be able to assess the investment practices of ELTIF managers. Thus, ELTIFs should be subject to additional disclosure requirements. In particular, ELTIFs should disclose the share of their assets that comply with the taxonomy requirements.

2022/04/26
Committee: ECON

Proposal for a regulation
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 . 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).deleted

2022/04/26
Committee: ECON

Proposal for a regulation
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 and refusals 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).

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 14

(14) In order to better use the expertise of the ELTIF managers and because of diversification benefits, in certain cases it can be beneficial for ELTIFs to invest all or almost all of their assets into the diversified portfolio of the master ELTIF. ELTIFs should therefore be allowed to pool their assets and make use of master- feeder structures by investing in master ELTIFs. However, as master-feeder structures are more complex, retail investors might not have sufficient knowledge and expertise to assess the risks associated with their investment. This type of strategy may also increase the fees for retail investors. Therefore, the use of master-feeder structure should be allowed only for ELTIFs marketed to professional investors.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 15

(15) The diversification requirements laid down in the current version of Regulation (EU) 2015/760 were introduced to ensure that ELTIFs can withstand adverse market circumstances. Those diversification thresholds imply, however, that ELTIFs are, on average, required to make ten distinct investments. In relation to investment in projects or infrastructures of large scale, the requirement to make ten investments per ELTIF may be difficult to achieve, and costly in terms of transactional costs and capital allocation. To reduce transaction and administrative costs for ELTIFs and ultimately their investors, ELTIFs should therefore be able to pursue more concentrated investment strategies and thus to be exposed to fewer eligible assets. It is therefore necessary to adjust the diversification requirements for ELTIFs’ exposures to single qualifying portfolio undertakings, single real assets~~, collective investment undertakings~~ and certain other eligible investment assets, contracts and financial instruments. That additional flexibility in the portfolio composition of ELTIFs and the reduction in the diversification requirements should not materially affect the capacity of ELTIFs to withstand market volatility, since ELTIFs typically invest in assets that often do not have a readily available market quotation, may be highly illiquid, and frequently have long-term maturity or time horizon.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 16

(16) Unlike retail investors, professional investors may, in certain circumstances, have a longer time horizon, distinct financial returns objectives, more expertise, possess higher risk tolerance to adverse market conditions and higher capacity to absorb losses. Such professional thus require less investor protection measure than retail investors. It is therefore appropriate to remove the diversification requirements for ELTIFs that are solely marketed to professional investors.deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 19

(19) Article 30(3) of Regulation (EU) 2015/760 currently requires, for potential retail investors whose financial instrument portfolio does not exceed EUR 500 000, an initial minimum investment in one or more ELTIFs of EUR 10 000, and requires that such investors do not invest an aggregate amount exceeding 10 % of that their financial instrument portfolio in ELTIFs. When applied together, the EUR 10 000 minimum initial investment participation and the 10 % limitation on aggregate investment create a significant obstacle for the retail investor to invest in ELTIFs, which conflicts with the goal of an ELTIF to establish a retail alternative investment fund product. It is therefore necessary to remove that EUR 10 000 initial minimum investment requirement and ~~the 10 %~~raise it to 30 % the limitation on aggregate investment.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 24

(24) Article 13(1) of Regulation (EU) 2015/760 currently requires that ELTIFs invest at least 70 % of their capital in eligible investment assets. This high threshold for the composition of eligible investment assets in ELTIFs’ portfolios was initially established in view of the focus of ELTIFs on long-term investments and the contribution such investments would make to the financing of a sustainable growth of the Union’s economy. Given the illiquid and idiosyncratic nature of certain eligible investment assets within ELTIFs’ portfolios, however, it may prove difficult and costly for ELTIF managers to manage the liquidity of ELTIFs, honour redemption requests, enter into borrowing arrangements, and execute other elements of ELTIFs’ investment strategies pertaining to the transfer, valuation and pledging of such eligible investment assets. Lowering the eligible investment assets threshold would enable ELTIF managers to better manage the liquidity of ELTIFs.deleted

2022/04/26
Committee: ECON

Proposal for a regulation
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~~are limited in pursueing 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~~However, higher leverage entails higher rais~~e 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 50~~ ks. Therefore the borrowing cash threshold for ELTIFs marketed to retail investors should be kept at 30% of the value of the ~~capital of the~~ ELTIF. The 530 % 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 capital.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 26

(26) To provide ELTIFs with wider investment opportunities, ELTIFs should be able to borrow in the currency in which the manager of the ELTIF expects to acquire the asset. It is, however, necessary to mitigate the risk of currency mismatches and thus to limit the currency risk for the investment portfolio. ELTIFs should therefore ~~either~~ put in place adequate hedges of the currency exposure~~, or should borrow in another currency where foreign currency exposures do not bring about significant currency risks~~.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 28

(28) Given the increase of the maximum thresholds for borrowing cash by ELTIFs marketed to professional investors and the removal of certain limitations on the borrowing of cash in foreign currencies, investors should have more comprehensive information on the borrowing strategy and limits employed by the ELTIF. It is therefore appropriate to require ELTIF managers to explicitly disclose in the prospectus of the ELTIF concerned the borrowing strategy and the borrowing limits and to provide information on how leverage will contribute to the ELTIF strategy and how currency and duration risks will be mitigated.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 29

(29) Article 18(4) of Regulation (EU) 2015/760 currently requires that investors in an ELTIF may request the winding down of that ELTIF where their redemption requests, made in accordance with the ELTIF’s redemption policy, have not been satisfied within one year from the date on which those requests were made. Given the long-term orientation of ELTIFs and the often idiosyncratic and illiquid asset profile of ELTIFs’ portfolios, the entitlement of any investor or a group of investors to request the winding down of an ELTIF can be disproportionate and detrimental to both the successful execution of the ELTIF investment strategy and the interests of other investors or groups of investors. It is therefore appropriate to ~~delete the possibility for investors to require the winding down of an ELTIF where that ELTIF is unable to satisfy redemption requests~~entitle competent authorities to decide whether the winding down of the ELTIF is justified.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 31

(31) Article 19(1) of the current version of Regulation (EU) 2015/760 requires that the rules or instruments of incorporation of an ELTIF do not prevent units or shares of the ELTIF from being admitted to trading on a regulated market or on a multilateral trading facility. Despite that possibility, ELTIF managers, investors and market participants have hardly used the secondary trading mechanism by for the trading of shares or units of ELTIFs. To promote the secondary trading of ELTIF units or shares, it is appropriate to allow ELTIF managers to put in place a possibility for an early exit of ELTIF investors, before the end of the ELTIF’s life. In order to ensure an effective functioning of such a secondary trading mechanism, such an early exit should be possible only where the manager of the ELTIF has put in place a policy for matching potential investors and exit requests. That policy should, among others, specify the transfer process, the role of the ELTIF manager and the ELTIF administrator, the duration of the liquidity window during which the units or shares of the ELTIF could be exchanged, the execution price, pro-ration conditions, disclosure requirements, fees, costs and charges and other conditions pertaining to such a liquidity window mechanism. As the secondary market for ELTIFs is still rather limited, the ELTIF manager should clearly indicate that this liquidity window mechanism might not be swiftly actionable at all times.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 34

(34) Adequate disclosure of fees and charges is critically important for the evaluation of the ELTIFs as a potential investment target by investors. Such disclosure is also important where the ELTIF is marketed to retail investors in the case of master-feeder structures. It is therefore appropriate to require the ELTIF manager to include in the annual report of the feeder ELTIF a statement on the aggregate charges of the feeder ELTIF and the master ELTIF.

2022/04/26
Committee: ECON

Proposal for a regulation
Recital 40

(40) In order to give ~~ELTIF~~ managers of existing ELTIF sufficient time to adapt to the new requirements, including the requirements pertaining to the portfolio composition and marketing of ELTIFs to investors, this Regulation should start to apply ~~six~~twelve months after its entry into force,

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 1

Regulation (EU) 2015/760
Article 1 – paragraph 2

2. The objective of this Regulation is to facilitate the raising and channelling of capital towards long-term investments in the real economy, in line with the Union objective of smart, sustainable and inclusive growth. and of the European Green Deal.’;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a

Regulation (EU) 2015/760
Article 2 – point 6

(6) ‘real asset’ means an asset that has an intrinsic value due to its substance and properties;, including infrastructure and other assets that give rise to economic or social benefit, such as education, counselling, research and development, and including commercial property or housing;’;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a a (new)

Regulation (EU) 2015/760
Article 2 – point 7 – point (ca) new

(a a) the following point (ca) is inserted in point (7): (ca) a reinsurance undertaking as defined in Article 13, point (4), of Directive 2009/138/EC;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) 2015/760
Article 2 – point 14a

(b) the following point (14a) is inserted: ‘‘(14a) ‘simple, transparent and standardised securitisation’ means a securitisation that complies with the conditions set out in Article 18 of Regulation (EU) 2017/2402 of the European Parliament and of the Council*1’; __________________________________ __ *1 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).’;’deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point d a (new)

Regulation (EU) 2015/760
Article 2 – point 22 (new)

(d a) the following point (22) is added: (22) ‘ELTIF marketed as environmentally sustainable’ means an ELTIF where the fund manager provides investors with a commitment or any form of pre- contractual claim that the fund will invest in economic activities that contribute to an environmental objective as defined in Regulation (EU) 2020/852’.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 3 Regulation (EU) 2015/760

3. The competent authorities of the ELTIFs shall, on a monthly basis, inform ESMA of authorisations granted, denied 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.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 3

Regulation (EU) 2015/760
Article 3 – paragraph 3 – subparagraph 3

The central public register shall be made publicly available in electronic format.;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a

Regulation (EU) 2015/760
Article 5 – paragraph 1 – subparagraph 2 – point b

(b) the name of the proposed manager of the ELTIF and information on its current and previous fund management history and any other experience relevant for the management of the ELTIF ;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 a (new)

Regulation (EU) 2015/760
Article 6 – paragraph 5

(4 a) In Article 6, paragraph 5 is replaced by the following: ""The competent authority of the ELTIF shall communicate to the EU AIF the reason for its refusal to grant authorisation as an ELTIF. The competent authority of the ELTIF shall also communicate its decision to the ESMA which shall keep record of rejected applications. ESMA shall provide information regarding fund managers whose authorisation has been denied to competent authorities upon request."" Or. en (Regulation (EU) 2015/760)

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4 b (new)

Regulation (EU) 2015/760
Article 9 – paragraphs 1a and 1b (new)

(4 b) In Article 9, paragraphs 1a and 1b are inserted: "1a.An ELTIF shall only invest in assets the underlying economic activities of which do not significantly harm any of the environmental objectives set out in Article 9 of Regulation (EU) 2020/852 in accordance with Article 17 and the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of that Regulation. 1b. An ELTIF marketed as environmentally sustainable shall only invest in assets that meet the taxonomy requirements as laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 .";

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) 2015/760
Article 10 – paragraph 1

1. An asset as referred to in Article 9(1), point (a), and in Article 9(1a) shall only be eligible for investment by an ELTIF where it falls into one of the following categories:

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) 2015/760
Article 10 – paragraph 1 – point b

(b) debt instruments issued by a qualifying portfolio undertaking as referred to in Article 11(1) with a maturity aligned to the life of the ELTIF;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) 2015/760
Article 10 – paragraph 1 – point c

(c) loans granted by the ELTIF to a qualifying portfolio undertaking as referred to in Article 11(1) with a maturity ~~that does not exceed~~aligned with the life of the ELTIF;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) 2015/760
Article 10 – paragraph 1 – point f

(f) simple, transparent and standardised securitisations where the underlying exposures correspond to one of the following categories: (i) assets listed in Article 1, points (a)(i), (ii) or (iv), of Commission Delegated Regulation 2019/1851\*3; (ii) assets listed in Article 1, points (a),(vii) and (viii), of Delegated Regulation 2019/1851, provided that the proceeds from the securitisation bonds are used for financing or refinancing long-term investments. ___________ *3 Commission Delegated Regulation (EU) 2019/1851 of 28 May 2019 supplementing Regulation (EU) 2017/2402 of the European Parliament and of the Council with regard to regulatory technical standards on the homogeneity of the underlying exposures in securitisation (OJ L 285, 6.11.2019, p. 1).’;deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point b a (new)

Regulation (EU) 2015/760
Article 11 – paragraph 1 – point c – points iii and iv

(b a) in point c, points (iii) and iv) are added: iii) is not on the EU list of third-countries with strategic deficiencies or compliance weaknesses in their AML/CFT regime; iv) is not a country subject to EU restrictive measures.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a – introductory part

Regulation (EU) 2015/760
Article 13

(a) paragraphs 1~~, 2~~ and 32 are replaced by the following:

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a

Regulation (EU) 2015/760
Article 13 – paragraph 1

1. An ELTIF shall invest at least 670 % of its capital in eligible investment assets amongst which at least 50% shall meet the taxonomy requirements as laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a

Regulation (EU) 2015/760
Article 13 – paragraph 2 –point c

(c) 210 % of its capital in units or shares of any single ELTIF, EuVECA, EuSEF, UCITS or EU AIF managed by an EU AIFM;

2022/04/26
Committee: ECON

(d) 10 5% of its capital in assets as referred to in Article 9(1), point (b), where those assets have been issued by any single body.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point a

Regulation (EU) 2015/760
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

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point b

Regulation (EU) 2015/760
Article 13 – paragraph 3a

(b) the following paragraph 3a is inserted: ‘3a. The aggregate value of simple, transparent and standardised securitisations in an ELTIF portfolio shall not exceed 20% of the value of the capital of the ELTIF.;’deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point e

Regulation (EU) 2015/760
Article 13 – paragraph 6

(e) in paragraph 6, the first sentence is replaced by the following: ‘By way of derogation from paragraph 2, point (d), an ELTIF may raise the 10 % limit referred to in that point to 25 % where bonds are issued by a credit institution which has its registered office in a Member State and is subject by law to special public supervision designed to protect bond-holders.;’deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 8 – point f

Regulation (EU) 2015/760
Article 13 – paragraph 8

~~(f) the following paragraph 8 is added: ‘8. The investment thresholds set out in paragraphs 2 to 4 shall not apply where ELTIFs are marketed solely to professional investors.;’~~deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9 – point a

Regulation (EU) 2015/760
Article 15 – paragraph 1

1. An ELTIF may acquire no more than 30 % of the units or shares of a single ELTIF, EuVECA, EuSEF, UCITS or of an EU AIF managed by an EU AIFM~~. That limit shall not apply where ELTIFs are marketed solely to professional investors.~~;

2022/04/26
Committee: ECON

~~(b) in paragraph 2, the following subparagraph is added: ‘Those concentration limits shall not apply where ELTIFs are marketed solely to professional investors.;’~~deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – point i

Regulation (EU) 2015/760
Article 16 – paragraph 1 – point a

(a) it represents no more than 530 % of the value of the capital of the ELTIF, and no more than 100 % of the value of the capital of the ELTIF for ELTIFs marketed solely to professional investors;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – point i

Regulation (EU) 2015/760
Article 16 – paragraph 1 – point c

(c) it is contracted in the same currency as the assets to be acquired with the borrowed cash or in another currency where currency exposure has been hedged ~~or where it can be otherwise demonstrated that the borrowing in another currency does not expose the ELTIF to material currency risks.~~;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point b

Regulation (EU) 2015/760
Article 16 – paragraph 1a

(b) the following paragraph 1a is inserted: ‘1a. Borrowing arrangements which are fully covered by investors’ capital commitments shall not be considered to constitute borrowing for the purposes of paragraph 1.;’deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 10 a (new)

Regulation (EU) 2015/760
Article 18 – paragraph 2 – point c

(10 a) In Article 18(2), point c is replaced by the following: ""(c) the manager of the ELTIF sets out a defined redemption policy, which clearly indicates the periods of time during which investors may request redemptions. The periods of time shall be defined in accordance with the underlying assets portfolio and shall not be shorter than semi-annual.";"

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11

Regulation (EU) 2015/760
Article 18 – paragraph 4

(11) in Article 18, paragraph 4 is ~~deleted~~replaced by the following: "Where the ELTIF does not satisfy within one year the investors’ redemption request made in accordance with the ELTIF redemption policy, the investors shall inform the competent authority. The competent authority may request the winding down of the ELTIF, after taking into account its possible detrimental impact on the other ELTIF investors.";

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 13 – point i

Regulation (EU) 2015/760
Article 19 – paragraph 2a – point ca

(c a) investors are duly informed ex ante that their exiting request might not match with potential investors interest at all times .’;

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 14 a (new)

Regulation (EU) 2015/760
Article 22 – paragraph 4

(14 a) Article 22 paragraph 4 is replaced by the following: "4. The rules of an ELTIF shall specify the distribution policy that the ELTIF will apply during its life. Where marketed to retail investors, the distribution policy shall be designed to minimise the volatility of returns to investors." Or. en (Regulation 2015/760)

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15 – point a a (new)

(a a) (aa) In Article 23, the following point (g) is inserted under paragraph 3: (g) the share of assets complying with the criteria laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation 2020/852 in which the ELTIF intends to invest in

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15 – point b a (new)

Regulation (EU) 2015/760
Article 23 – paragraph 4 – point j (new)

(b a) in paragraph 4, the following point is added: '(j) set out the procedures by which the fund assesses the long-term economic, social and environmental impact of eligible portfolio undertakings, as well as its corporate governance.';

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15 – point b

Regulation (EU) 2015/760
Article 23 – paragraph 5

(b) in paragraph 5, the following subparagraph is added: ‘Where the ELTIF is marketed to retail investors, the manager of the ELTIF shall include in the annual report of the feeder ELTIF a statement on the aggregate charges of the feeder ELTIF and the master ELTIF. The annual report of the feeder ELTIF shall indicate how the annual report or reports of the master ELTIF can be obtained.’deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15 – point b b (new)

Regulation (EU) 2015/760
Article 23 – paragraph 5 – point e (new)

(b b) in paragraph 5, the following point is added: '(e) information on the alignment of the ELTIF investment decisions with the Green Deal objectives, including the share of its investments effectively allocated to assets that meet the taxonomy requirements as laid down in the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852.';

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) 2015/760
Article 30 – paragraph 3

3. Paragraphs 1 and 2 shall not apply where the retail investor is a member of senior staff, portfolio manager~~, director, officer, agent or employee~~ or director of the manager or of an affiliate of the manager and has sufficient knowledge about the ELTIF concerned.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) 2015/760
Article 30 – paragraph 4

4. In case of a master-feeder structure, the prospectus of the feeder ELTIF shall contain all of the following information: (a) a declaration that the feeder ELTIF is a feeder of the master ELTIF; (b) the investment objective and policy, including the risk profile and whether the performance of the feeder and of the master ELTIF are identical, or to what extent and for which reasons they differ; (c) a brief description of the master ELTIF, its organisation, its investment objective and policy, including the risk profile, and information on how the prospectus of the master ELTIF can be obtained; (d) a description of all remuneration or reimbursement of costs payable by the feeder ELTIF by virtue of its investment in units of the master ELTIF, as well as of the aggregate charges of the feeder ELTIF and the master ELTIF; (e) a description of the tax implications for the feeder ELTIF of the investment into the master ELTIF .deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) 2015/760
Article 30 – paragraph 5

~~5. A feeder ELTIF shall disclose in any marketing communications that it permanently invests 85 % or more of its assets in units of the master ELTIF.~~deleted

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 20

Regulation (EU) 2015/760
Article 30 – paragraph 5a (new)

5 a. Where the financial instrument portfolio of a potential retail investor does not exceed EUR 500 000, the manager of the ELTIF or any distributor, after having performed the suitability test referred to in paragraph 1 of this Article and having provided appropriate investment advice, shall ensure, on the basis of the information submitted by the potential retail investor, that the potential retail investor does not invest an aggregate amount exceeding 30 % of that investor's financial instrument portfolio in ELTIFs. The potential retail investor shall be responsible for providing the manager of the ELTIF or the distributor with accurate information on the potential retail investor's financial instrument portfolio and investments in ELTIFs as referred to in the first subparagraph. For the purpose of this paragraph, a financial instrument portfolio shall be understood to include cash deposits and financial instruments, but shall exclude any financial instruments that have been given as collateral.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 21

Regulation (EU) 2015/760
Article 37 – paragraph 1 – point i a (new)

(i a) whether ELTIFs have made a significant contribution to the financing of the digital and green transition and whether this Regulation should be updated to enable ELTIFs to contribute effectively to the achievement of the Green Deal objectives.’.

2022/04/26
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 2

Regulation (EU) 2015/760
Article 38 – paragraph 1 – subparagraph 2

It shall apply from [entry into force + 612 months].

2022/04/26
Committee: ECON