Organiser: European Commission
On 26 June, the European Commission will propose a new framework designed for investors who want to invest money in companies and projects with long-term prospects, such as infrastructure projects. European Long Term Investment Funds (ELTIFs) will place investors' money in businesses that need capital committed to them for long periods of time. They will be available to all types of investors across Europe – with no red tape - provided they meet a minimum set of rules. The objective is to unlock and increase funding for projects which can make a substantial difference to jobs and growth over the long run.
Increasing the amount of non-bank finance available to businesses across the Union is a key aim of the European Commission. ELTIFs represent an important element of this work as set out in the Single Market Act II communication in October 2012 and in the Green paper on Long-Term Financing of the European Economy. The fragmented nature of the investment fund market can make it hard for would-be investors to identify funds that have long-term investment objectives and thus restricts the capacity of funds to grow. The introduction of ELTIFs would improve this situation. The Commission has carried out extensive discussions with a wide range of organisations and also through a public consultation, and has undertaken an Impact Assessment assessing different policy options for increasing long-term investment options whilst ensuring adequate protections are in place for investors.