ELTIF 2.0 – Central Bank consultation on new ELTIF chapter of AIF Rulebook
On 1 November 2023, the Central Bank of Ireland (Central Bank) published Consultation Paper 155 on a proposed new European Long Term Investment Fund (ELTIF) chapter of the Central Bank’s AIF Rulebook (CP155) enabling the authorisation in Ireland of ELTIFs using Ireland’s popular regulated fund vehicles, including the ICAV.
CP155 proposes a stand-alone ELTIF chapter for inclusion in the Central Bank’s AIF Rulebook to facilitate the establishment of ELTIFs in Ireland. This is a welcome development and means that the ELTIF will be a stand-alone product that will benefit from the well understood Irish tax regime applicable to Irish regulated funds. The proposed ELTIF chapter will include supervisory and operational conditions that align with those applicable under other Irish regulated fund regimes, and does not gold-plate the product features set out in ELTIF 2.0 regulation on eligible investments, portfolio composition and diversification, etc. CP155 includes draft sections from the new ELTIF chapter in the AIF Rulebook addressing:
- ELTIF general restrictions and applicable transparency requirements
- Supervisory requirements and applicable operational policies and processes
- Prospectus disclosure requirements
- General operational requirements including in relation to dealing in an ELTIF
- Annual and semi-annual financial statement disclosure requirements
- Requirements applicable to the marketing of ELTIFs established outside Ireland to retail investors in Ireland.
CP155 asks stakeholders to confirm if they agree with the proposed rules under each of the chapter sections and to provide any further comments they may have. The consultation concludes on 13 December 2023 and it is expected that the AIF Rulebook will be updated to reflect the new ELTIF chapter in time for the implementation of the revised European Long Term Investment Funds Regulation (EU) 2023/606 (ELTIF 2.0) which will apply across the EU from 10 January 2024. Please let us know if you have any comments that you would like us to include in our response.
The introduction of a new dedicated ELTIF chapter in the AIF Rulebook is a welcome development and reflects a further enhancement of Ireland’s offering for private funds.
For more information, please contact any member of the ALG Asset Management & Investment Funds Team.
Date published: 09 November 2023