Extracts from the press conference by Michel Barnier on Long term investment funds
On 26 June 2013, Michel Barnier, Member of the EC in charge of Internal Market and Services, presented the European Commission's proposal on new long term investment framework, at the European Commission in Brussels, Belgium.
On the same date, the European Commission proposed a new investment fund framework designed for investors who want to put money into companies and projects for the long term. These private European Long-Term Investment Funds (ELTIFs) would only invest in businesses that need money to be committed to them for long periods of time. The proposal will be presented to the Heads of State and Government at the upcoming European Council on 27-28 June 2013 where long-term financing of the real economy is on the agenda.
The new Funds would be available to all types of investor across Europe subject to certain requirements set out in EU law. These requirements include the types of long-term assets and firms that the ELTIFs are allowed to invest in, for example infrastructure, transport and sustainable energy projects, how they have to spread their money to reduce risks and the information they have to give to investors. Any ELTIF manager would also have to comply with all of the stringent requirements of the Alternative Investment Fund Managers Directive to provide adequate protection for its investors. SHOTLISTLINK