The publication of the Regulation for ELTIFs on 19 May 2015 in the EU Official Journal will result in ELTIFs being introduced under the AIFMD as a new fund label for long term investment funds but ones which will have a passport for promotion of retail investors. The logic as to how UCITS and AIFMD sit alongside each other, with AIFMD being for managers of alternative investment funds offered to professional investors, is put into question. Nonetheless, it is encouraging that the European Commission is open to widening the offering of the range of investment funds. Indeed, in its flagship initiative for Building a Capital Markets Union published in February, it sees early progress resulting from supporting the take up of new ELTIFs to channel investment into infrastructure and other long term projects.
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