On Friday 25 March, ISLA submitted a response to the European Commission (EC)’s Legislative Proposal, amending Regulation (EU) 2015/760 on European Long Term Investment Funds (ELTIFs) consultation.
In the letter, ISLA raised concerns pertaining to the rules around eligible assets. Under the current regulation, an ELTIF must not enter into a securities lending or borrowing transaction if thereby more than 10% of the assets of the ELTIF are affected. ISLA believe that to effectively promote the attractiveness of investing in ELTIFs, the use of investment tools must be permitted in order to increase liquidity in long-term investments.
ISLA also included comments on supporting the EC’s adjustment to Article 13, as well as advocating that securities lending can play an important role in the EC’s endeavours to improve the scalability of ELTIFs.
ISLA’s response can be found here.
Visit ISLA’s European Long Term Investment Fund page to learn more.